APRA highlights new DEI report

Yasmine Raso

Senior Journalist, Financial Newswire

20 February 2023

The Australian Prudential Regulation Authority (APRA) has shared a new diversity, equity and inclusion (DEI) report from the International Association of Insurance Supervisors (IAIS) with APRA-regulated entities.

The report from the IAIS, of which APRA is a member, examined how global insurance supervisors, relevant international organisations and industry players have made headway on diversity, equity and inclusion (DEI) standards.

APRA suggested all regulated entities, including banks and superannuation trustees, would find the IAIS report useful to understand how to approach and overcome any DEI challenges.

The report also presented further DEI strategies the IAIS is looking to initiate within governance, risk management and corporate culture, as well as how consideration of DEI factors could make the conduct of insurers fairer and more accommodating of consumers who are vulnerable, under-served or have non-normative needs.

“APRA recognises that strong diversity and inclusion practices are important elements to ensure the financial system is better able to support the economy through well-run entities and sound financial markets that can respond to the diverse needs of the community,” the regulator said in an announcement.

“A resilient financial services sector is one that can bring together and respond to different views and perspectives, so that opinions and ideas can be raised and decisions challenged effectively, thereby enhancing governance and risk management.

“APRA has also previously spoken about the importance of boards comprising people from a range of professional and demographic backgrounds to facilitate better decision-making and stronger risk-management.

“APRA will consider how it might strengthen consideration of inclusion and diversity across its regulated industries as part of this year’s review of Prudential Standard CPS 510 Governance.”