CPS230 is here. Is your company ready? The Australian Relegation Prudential Authority (APRA) Standard CPS230 is one of the most impactful regulation changes of the prudential standard and could mean a host of technology changes for regulated companies such as banking, insurance, and financial services. This standard focuses on operation risk management, critical operations, service provider management, and business continuity planning.
While increasing resilience, reducing impact of risk, and system outages will all be highly beneficial, it may be challenging for some organisations to plan and complete the required work in the timeframe. With a recommended implementation timeline of July 2025, regulated companies need to urgently assess their ability to meet these requirements.
Insurance companies focus on their core business of maintaining excellent service and helping businesses, families and individuals who are going through difficult times. However, compliance is crucial for protecting consumers, ensuring financial stability, fulfilling legal obligations, maintaining market integrity and managing reputational risk.
By 2025, insurance companies will be expected to have a plan in place to meet the following:
- Enhanced resilience against operation disruptions
- Improved risk management practices
- Increased continuity and faster disruption recovery
As well as the Prudential Standard CPS 230, there are other themes of regulatory change on the horizon. Climate change continues to be a hot topic for all industries and APRA and ASIC are increasing their scrutiny particularly around greenwashing and climate-related disclosures. Additionally, both ASIC and APRA are implementing the Finance Accountability regime, extending accountability of financial misconduct to individuals.
The constantly changing environment of the insurance industry is subject to many evolving needs and challenges. This is also a dynamic and complex regulatory environment to navigate. With multiple governing bodies APRA, ASIC, ACCC, AFCA, and the Treasury, State and Territorial Legislation, there are over 100 pieces of regulation and a comprehensive code of practice; it may seem a daunting task to stay on top of regulatory changes. Jade Software works with many insurance companies to assess their current state and prepare a plan meet regulatory requirements.
The team at Jade Software are heading to the Adapt CIO Edge event in Sydney on 29 August to discuss this and other technology challenges facing Insurance Companies.
To learn more about regulatory compliance with Jade Software, visit our website.