APRA has commenced a review of the capital standards for private health insurers to ensure they remain sufficient to protect policyholders. APRA will shortly commence consulting with industry and other stakeholders ahead of releasing a discussion paper on the potential revisions to the capital framework toward the middle of 2019.
The review of the capital framework for private health insurance (PHI) is the final phase of APRA’s PHI Roadmap, launched in 2016 shortly after APRA took over regulatory responsibility for the sector from the Private Health Insurance Administration Council (PHIAC):
- Phase One was focused on risk management and took effect from April this year.
- Phase Two was aimed at lifting standards of governance and decision-making; it was finalized in September and comes into force from July 01 next year.
- Phase Three of the PHI Roadmap is expected to be finalized before the end of 2020, with transition arrangements put in place to help insurers adjust to the new framework.
APRA will now turn its attention the capital framework it inherited from PHIAC to ensure it remains fit for purpose. In addition to examining whether the minimum capital requirements sufficiently support PHI resilience, APRA will consider more closely aligning the framework to the capital framework used by life and general insurers.
Keywords: Asia Pacific, Australia, Insurance, Private Health Insurers, Capital Requirements, PHI Roadmap, APRA
Previous ArticleEBA Single Rulebook Q&A: Second Update for October 2018
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.