Tower warns on increased capital requirements
Tower Australia Limited chief executive Jim Minto has used the company’s annual general meeting to send a strong message to the Australian Prudential Regulation Authority (APRA) on the danger of increasing capital requirements on life insurance companies.
Minto said that his largest fear with respect to the changes in capital requirements was that it would ultimately flow through to consumers.
“APRA is presently reviewing the capital position of the life insurance industry and this may increase capital requirements,” he said. “We will not know details until later this year and have a number of options and strategies to address any needs.”
He said the company’s largest fear was that “any new capital requirements by APRA will flow on to consumers in higher policy prices making getting life insurance harder to obtain and afford”.
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Mike Taylor
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