The new APRA Prudential Standard CPS 230 is set to redefine operational resilience in the insurance industry, impacting not only APRA-licensed insurers but also their suppliers and third-party service providers. While the standard directly applies to insurers, experts like Yvonne Lam, Principal at Gilchrist Connell, warn that the fallout will extend across the entire industry.

CPS 230 mandates that insurers identify critical operations and material service providers to ensure they can continue functioning during disruptions. However, even businesses indirectly connected to insurers—such as those handling claims, underwriting, or IT infrastructure—will need to comply with the standard’s rigorous requirements.

Key Insights:

• Wider Impact: CPS 230’s reach goes beyond regulated insurers to include any business involved in critical insurance operations.

• Prepare Early: The regulation takes effect in July 2025, but businesses should start reviewing their compliance and risk management strategies now.

• Collaboration is Key: Insurers and their partners must work together to align on compliance and ensure operational resilience.

Start preparing today to mitigate risks and ensure your business is ready for the upcoming regulatory changes.

For more detailed insights into the cascading impacts of CPS 230, read the full article here: CPS 230 Fallout: What You Need to Know.