Contents

• Introduction to banking and financial system and insurance industry in Australia
• Executive summary
Introduction – Purpose, Background, Regulation
Historical performance – Comparative success of the industry, Government intervention, Campbell committee, Diversification, Wallis report
• Current Issue – Industry performance, Industry composition, Further reforms of the prudential framework
Future implications
• Conclusion regularization of insurance industry
• Appendices
• Bibliography

Description

The insurance industry has gone through several changes as far as the regulations are concerned. Before the Second World War the insurance industry was very stable due to which the government intervention was the least, the industry was affected by Second World War which leads to more government interference and the industry was regulated. Later in 1981, the government appointed a committee to inquire into the regulation and control of the Australian financial system. As a result of the findings of this committee, deregulation took place. Life insurance companies, which were based on the mutual structure, started to demutualization in order to raise more capital. 17 years later, in 1998 Australian Prudential Regulatory Authority was formed to keep a check on the life insurance companies, as it was felt that some regulations were necessary. APRA is doing a lot of work in order to ensure that the insurance companies are doing their work properly