While insurance companies are exposed to credit, operational and investment risk, there is no direct regulation for these risks set out by APRA.

Question

Quizplus · Accepted Answer

APRA primarily regulates prudential standards for insurance companies in relation to solvency and capital adequacy, but credit, operational, and investment risks are generally managed internally by the insurance companies themselves. However, APRA does require insurance companies to regularly report on their risk management practices and has the power to intervene if any risks are deemed to be excessive or not adequately managed.

While Insurance Companies Are Exposed to Credit, Operational and Investment