Regulatory AlertsPrudential Standard HPS 110 Capital Adequacy
The Australian Prudential Regulation Authority issued Prudential Standard HPS 110 to require all private health insurers to maintain adequate capital levels commensurate with their risk profiles. The standard mandates the implementation of an Internal Capital Adequacy Assessment Process and establishes a risk-based Prudential Capital Requirement calculated from insurance, asset, concentration, and operational risk charges. Additionally, insurers must secure APRA approval for planned capital reductions and adhere to strict annual disclosure and reporting obligations regarding their capital positions.
Share