Featured Product

    Peter Kohlhagen on Capital Framework for Private Health Insurers

    June 04, 2019

    While speaking at the Health Insurance Summit 2019 in Sydney, Peter Kohlhagen from APRA provided an update on the review of capital requirements, also highlighting the plans to release an initial discussion paper, in the coming months, on the capital framework for private health insurance industry. APRA expects that a revised capital framework would be implemented before the end of 2021.

    Mr. Kohlhagen highlighted that APRA had, in November 2018, outlined its planned approach to reviewing the capital framework for private health insurers. The current capital framework has been in place since 2014 and this review provides an opportunity to ensure that capital standards in the industry provide for an appropriate level of resilience to protect policyholders. APRA intends to consult on proposals that adapt the capital framework that is already in place for the life and general insurance sectors for the private health insurance industry. However, this does not mean that APRA will apply the framework as it is. Instead, APRA is identifying areas where sector-specific adjustments are warranted to recognize the differing risk profile and business models in the private health insurance industry. 

    APRA is considering adjustments that reflect the characteristics of insurance risk in the industry to take account of factors like the short-tail nature of claims, risk equalization, health-related business, and the constraints on premium setting and product design in a Gold/Silver/Bronze/Basic world. APRA is considering how to think about potential insurance concentration risks and how the capital framework should recognize the legislative requirements for community rating that underpin the industry. In addition, APRA is considering how to address policy change risk in the capital framework, given that such changes have been a source of insurer stress in the past. The Actuaries Institute is assisting APRA in this by providing some early advice on these matters. The Institute has also established a technical working group to identify issues and suggest approaches that APRA could take to address them in the capital framework. 

    Finally, he mentioned the APRA intent to release an initial discussion paper in the coming months, outlining the proposed new capital framework for private health insurers. The release of this paper is expected to kick off an extended formal consultation period. APRA is looking forward to continuing to work with the industry to develop a capital framework that supports insurer resilience for the protection of policyholders, reiterated Mr. Kohlhagen. 


    Related Link: Speech

     

    Keywords: Asia Pacific, Insurance, Private Health Insurers, Capital Framework, Capital Requirements, APRA

    Related Articles
    News

    APRA Consults on Standard for Reporting of COVID-19 Loans

    APRA issued a letter to authorized deposit-taking institutions announcing its intent to formalize the capital measures and reporting requirements for COVID-19 loans through temporary legislative instruments.

    August 13, 2020 WebPage Regulatory News
    News

    EBA Consults Industry on Use and Uptake of Regtech Solutions Across EU

    EBA is inviting relevant stakeholders, such as financial institutions and information and communication technology (ICT) third-party providers, to share their views and experience on the use of regtech solutions through its regtech industry survey.

    August 12, 2020 WebPage Regulatory News
    News

    FCA Finalizes Guidance to Extend Measures for Insurers Amid COVID

    FCA finalized the guidance extending measures to help customers that hold insurance and premium finance products and are in temporary financial difficulty because of COVID-19 crisis.

    August 12, 2020 WebPage Regulatory News
    News

    BoE Clarifies Approach to Treatment of Payment Holidays on Form PL

    BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.

    August 11, 2020 WebPage Regulatory News
    News

    FASB to Conduct Post-Implementation Review of CECL Standard

    FASB announced the launch of its new Post-Implementation Review (PIR) web portal.

    August 11, 2020 WebPage Regulatory News
    News

    EBA Guidance on Impact of CRR Quick-Fix on Reporting and Disclosures

    EBA revised the draft implementing technical standards on supervisory reporting as part of the reporting framework 3.0.

    August 11, 2020 WebPage Regulatory News
    News

    ECB Examines ICAAP Practices of Banks in EU

    ECB published report that presents a summary of the analysis conducted on the internal capital adequacy assessment process (ICAAP) practices of a sample of 37 "significant" banks.

    August 11, 2020 WebPage Regulatory News
    News

    EC Proposes to Amend Rules for Financial Benchmarks

    EC published a proposal for a regulation that amends the Benchmarks Regulation (2016/1011) regarding the exemption of certain third-country foreign-exchange benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation.

    August 11, 2020 WebPage Regulatory News
    News

    PRA Suspends Relevant Guidance Levels on Fixed Rate Lending Limits

    PRA published a letter from Mel Beaman, the Director for UK Deposit Takers, to suspend the relevant guidance levels on fixed rate lending limits in the “Specialist Sourcebook” for an initial period of six months, running from August 01, 2020 to January 31, 2021.

    August 11, 2020 WebPage Regulatory News
    News

    BoE Provides Reporting Update on Form AS and Form FV

    BoE updated the known issues document for the statistical reporting Forms AS and FV.

    August 10, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5671