,Australia

APRA proposes reforms to strengthen private health insurance

One of the proposals is to increase minimum capital requirements.

The Australian Prudential Regulation Authority (APRA) has commenced public consultation on measures designed to strengthen the capital framework for private health insurance.

The regulatory body has released proposed reforms aimed to increase the industry’s financial resilience as well as raise confidence that private health insurers can continue to pay all legitimate claims from policyholders even under severe stress. 

The proposals increase minimum capital requirements, however APRA said that the industry is very well-capitalised and already holds capital significantly in excess of the new proposed regulatory minimums. APRA assessed that no insurer would need to increase premiums or raise equity to meet the higher minimum capital requirements.

“APRA’s capital standards play an essential role in ensuring private health insurers have the financial resources to meet their commitments to policyholders, even in the event of unexpected loss or crisis,” said deputy chair Helen Rowell.

Consultation on the new capital framework will close on 31 March 2022, with APRA expecting to release the final standards in the second half of the year.

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Insurance industry’s profit for 2021 reached $14.78b
The company said it cannot pay all the claims for all of its COVID-19 policies.
Generali is investing around $190.47m in two joint ventures.
This is exclusively offered for the first year’s policyholders.
The tool measures a customers financial health whilst offering solutions.
One of its aims is to research insurance products for autonomous driving.
The insurance firm is set to release a mind health index tailored by country. 
The grant will be used to improve a digital assistance platform.
Life segment to revive in 2022, driven by increased awareness.
Motor insurance premium decline triggered this shift.
The regulator said it plans to implement this in mid-February.
He was recently the previous underwriting chief of Echo Re.
The insurer proved stable with core operating profits at ¥690b.
This is part of the firm's commitment to develop in-house talents.
Insurers sold 42,376 policies from 1 January up to 17 January.