APRA released a package of prudential standards and guides to improve governance and decision-making in the private health insurance (PHI) industry. The package contains three new prudential standards, along with two prudential guides designed to assist insurers fulfill the requirements of the standards. The revised prudential standards will come into effect from July 01, 2019.
The measures, which were first outlined in a consultation package that was released in February this year, introduce stronger prudential standards that have successfully lifted capabilities across other APRA-regulated industries. The new prudential standards for private health insurers are:
- Prudential Standard CPS 510 Governance (CPS 510), a stronger cross-industry standard on board governance and renewal, which replaces the equivalent PHI-specific standard, HPS 510 Governance
- Prudential Standard CPS 520 Fit and Proper (CPS 520), which requires boards to establish and apply a written policy to ensure the competence and integrity of anyone exercising material influence over the company
- Prudential Standard HPS 310 Audit and Related Matters (HPS 310), which requires private health insurers to appoint an auditor to provide independent advice on their operations, financial position, and risk controls
APRA has also released two Prudential Practice Guides, CPG 510 and CPG 520, to help private health insurers meet the requirements of the new standards. Additionally, HPS 001 is the prudential standard that defines key terms referred to in other prudential standards that are applicable to private health insurers (also effective from July 09, 2019). APRA also confirmed that it will revoke the Prudential Standard HPS 350 Disclosure to APRA, which is no longer necessary. This is the culmination of Phase Two of the APRA roadmap for reviewing the PHI prudential framework. Phase One, focused on risk, resulted in the adoption of CPS 220 in April, the cross-industry risk management prudential standard of APRA. Phase Three will examine the capital standards in the industry and will commence later this year.
Effective Date: July 01, 2019
Keywords: Asia Pacific, Australia, Insurance, Private Health Insurers, CPS 510, CPS 520, HPS 310, HPS 001, APRA
Previous ArticleBank of France Hosts Meeting to Discuss Cyber Security of FMIs
Next ArticleIFRS Releases Taxonomy Formula Linkbase 2018
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).