Backed by a recent AUS$4million budget increase, the Australian Prudential Regulation Authority has released new governance standards for life and general insurance companies.

The move to develop new standards is a result of extensive consolidation in the industry and the new standards come into effect on October 1st this year.

The new standards have been brought in to equilibrate across the three industries for which the APRA is responsible. APRA chairman John Laker believes the new standards are an essential ingredient in the reforms to Australia’s supervisory framework. “The community expects regulated institutions to have a sound governance framework and conduct their affairs with a high degree of integrity,” he said.