The Australian Prudential Regulation Authority has now updated its regulatory framework to make access to alternative reinsurance solutions simpler and easier for insurers in the country, with targeted changes that will support access to catastrophe bonds and other insurance-linked securities (ILS) for potential sponsors there.
We reported back in November 2024 that the Australian Prudential Regulation Authority (APRA) had recognised its regulations were hindering insurer access to alternative reinsurance solutions in the country, especially for ILS such as catastrophe bonds.
As the consultation process went on, the APRA took into account industry feedback related to easing the sector’s use of alternative reinsurance solutions in the country, which as we reported in October 2025 included an updated proposal to remove the requirement for a reinstatement completely for instruments like catastrophe bonds.
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