APRA session on annuities receives industry | Australian Markets
The Council of Australian Life Insurers (CALI) has welcomed the news that the Australian Prudential Regulation Authority (APRA) will undertake a public session into annuity merchandise.
The session will enquire into the “capital settings” for annuity merchandise and proposes to change the best way the ‘illiquidity premium’ is calculated, which might help to decrease the capital necessities on life insurers to offer annuity merchandise to members.
On behalf of its members, the Australian life insurance coverage affiliation mentioned that whereas there’s roughly 5 million Australians both getting ready for or in retirement, the use of annuity merchandise stays low.
“With Australians living longer, they are spending more time in retirement and need access to stable and secure solutions to help them manage their finances over their whole life. Australia’s life insurers stand ready to help,” Christine Cupitt, CALI CEO, mentioned.
“No one wants to worry about outliving their savings. We want people to have a lot more choice and control over how they manage their finances once they stop working.”
The session comes because the regulator outlined its goal to raised help life insurers in offering more product alternatives to retirees in its Company Plan 2024-25.
CALI additionally confirmed it will actively take part within the session and regarded ahead to the release of the ultimate proposal within the second quarter of 2025.
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