The Australian Prudential Regulation Authority (“APRA”) has released a response paper and 14 draft prudential standards in a third round of consultation on its review of capital standards for general and life insurers.  The aims of the review include improving the risk-sensitivity of the capital standards and achieving better alignment of these standards across APRA-regulated industries. 
The response paper outlines the proposed eligibility requirements for components of the capital base for insurers, and the proposed limits for the components of the capital base.  These eligibility requirements and limits have been aligned with the relevant proposed Basel III requirements for authorised deposit-taking institutions, where appropriate. APRA will undertake further consultation on revised draft prudential standards, prudential practice guides and draft reporting forms during 2012.  The complete set of final prudential standards, reporting forms and instructions are expected to be released by October 2012.