General insurers are happy with the Australian Prudential Regulation Authority’s (APRA) supervision of the industry, a stakeholder survey shows.

Respondents rate APRA’s supervision 4.1 out of five, and give it the same score for its prudential framework 

When asked about the regulator’s risk assessment of individual companies, the stakeholders – insurers’ directors – award a score of 3.9.

When questioned about the impact of APRA’s prudential regulations on insurer operations, they rate the regulator 3.5.

They award a score of four for APRA’s impact on insurer risk management practices, but are less impressed with the workload created by regulatory requirements, scoring 3.7.

Insurers were more favourable to APRA dealing with the board rather than management, giving a score of 3.9.

The content of communications is rated four and the value of meetings with APRA achieves a score of 3.9

The authority’s ability to identify emerging industry issues is rated 3.5.

Speeches by senior APRA management and prudential practice guides score 3.5, and interactions with the regulator’s staff rate 3.3.

Information on the authority’s website scores was 3.3.

“Overall, the results of this survey are positive,” APRA says. “On average, directors endorsed APRA’s framework, guidance material and supervision.”

It says most insurers think the authority has a positive impact on risk management practices, but fewer indicate a positive impact on their financial management.

“There was some commentary on the amount of regulation and the focus on risk management taking the board’s attention away from business strategy and development.”