About $27.2 million will be collected from the general insurance industry to fund the prudential regulator’s supervision next financial year, Treasury says.

A discussion paper sets out the proposed financial institution levies for 2026-27, covering Australian Prudential Regulation Authority operational costs and “other specific costs incurred by certain Commonwealth agencies”.

APRA’s overall recovery requirement is about $297.3 million, including $19.5 million from the life industry.

The paper says general insurance represents 9.1% of the overall levy estimate and life insurance 6.4%.

APRA’s key general insurance activities will include examining claims management capabilities. In life, it will continue to assess sustainability challenges in total and permanent disability products across group and retail markets.

The closing date for submissions on the paper is June 14.