The introduction of APRA Connect has brought significant changes to the regulatory reporting landscape in Australia. As a result, regulated entities are required to transition from D2A to APRA Connect and comply with the new taxonomies and submission processes. This change can be overwhelming, time-consuming, and can pose challenges for entities that are not equipped with the right tools and processes. In combination with APRA's integration of AASB17 standards into the Capital and Regulatory Reporting frameworks in the insurance industry, the transition to APRA Connect will pose a significant challenge to the GI, Life and PHI industry. This is where a regtech solution comes in.
In this article, we'll explore the benefits of using a regtech solution to assist with automated reporting into APRA Connect, and why it's important for regulated entities in Australia.
Efficiency and Accuracy
Regulated entities can benefit from a regtech solution that automates their reporting processes. This solution can extract, transform, and load (ETL) data from various sources, including policy/claims management systems, financial and operational systems, and spreadsheets. The solution can then map the data to the correct taxonomy and validate it against the APRA Connect data model. This process saves regulated entities significant time and reduces errors, ensuring accuracy and consistency in their data submissions.
Flexibility and Transparency
A regtech solution can be tailored to meet the specific needs of a regulated entity. Entities will have a specific set of data sources that need to be integrated for APRA reporting. The ability to ingest and map any data set in a transparent way into the APRA reports delivers a high degree of automation, repeatability and scalability. This level flexibility means that entities can choose the regtech solution that best suits their needs, making the transition to APRA Connect as seamless and efficient as possible.
Regulated entities in Australia are required to submit accurate and timely data to APRA Connect. A regtech solution can assist with this process by ensuring the data is complete, consistent, and validated against APRA's regulatory requirements. This level of compliance reduces the risk of penalties and reputational damage, as well as provides the entity with peace of mind that they are meeting their regulatory obligations.
A regtech solution can help regulated entities save on costs associated with manual processes, such as data extraction, transformation, and loading, as well as the resources required for data validation and submission.
Improve Data Quality
With the complex and constantly changing regulatory reporting requirements, human errors can easily occur, leading to data inaccuracies and compliance issues. A regtech solution can automate provide real-time data validation and data quality monitoring, reducing the risk of errors and improving data accuracy.
Enhance Data Security and Privacy
Regulated entities handle sensitive financial data, making it crucial to maintain strict data security and privacy measures. A regtech solution can provide a secure and encrypted channel for data transmission, while also ensuring data integrity and confidentiality.
In summary, the transition from D2A to APRA Connect can be challenging for regulated entities in Australia. With compressed timelines and the big number of reporting changes in the insurance industry, entities will find that a manual approach to APRA reporting will not be fit for purpose. By using a regtech solution, entities can streamline their reporting processes, improve collaboration across all reporting stakeholders, increase efficiency and accuracy, ensure regulatory compliance, and save on costs. As APRA Connect continues to evolve and more regulatory changes are introduced, having a regtech solution that is always up to date with the latest taxonomies and submission models can provide entities with a competitive edge and ensure they meet their regulatory obligations.
Reg360 is Australia's leading APRA reporting solution. Learn more about how Reg360 delivers automated APRA reporting: