QBE welcomes the Coalition's announcement on LMI

QBE welcomes the Coalition’s commitment to reforming the Australian Prudential Regulation Authority’s (APRA) approach to the capital treatment of loans backed by lenders’ mortgage insurance (LMI).  Updating APRA’s framework through the Statement of Expectations is an important step toward making homeownership more accessible for Australians.

Housing is critical for the social and economic wellbeing of Australians.  Since 1965, LMI has played an important role supporting home ownership and financial system stability in Australia.  Adjusting the capital treatment of LMI-backed loans would support a level-playing field in the regulatory treatment of LMI and other forms of guarantees that support home lending.