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

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571