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 ArticleECB Issues Selected Pillar 3 Information on Significant Institutions
Next ArticleFSB Publishes Toolkit to Mitigate Misconduct Risk
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.