Helen Rowell, the Executive General Manager of the Supervisory Support Division at the Australian Prudential Regulatory Authority (“APRA”) presented a speech to the Insurance Council of Australia in which she noted that APRA is increasing its focus on how insurers set their risk appetite after reviews raised questions over the analysis behind risk-setting and boards’ involvement with the task. She states that discussions with directors and CEOs had found some boards had “a questionable level of engagement” in setting risk appetite. The reviews picked up a lack of analysis using stress testing that supported how an insurer set its risk appetite as well as a disconnect between the statement and its translation into operation. In response, APRA will increase its work on risk appetite and issue guidance to insurers.