Regulatory AlertsHPS 115 Capital Adequacy: Insurance Risk Charge
The Australian Prudential Regulation Authority issued Prudential Standard HPS 115 to require all private health insurers to maintain adequate capital against insurance risks using a prescribed calculation method. The standard mandates that the Insurance Risk Charge, a key component of the prescribed capital amount, be calculated as the sum of charges for insurance liabilities, future exposure, and deferred claims. This instrument revokes the previous determination and applies to all private health insurers starting from 1 January 2026.
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