Regulatory Alerts2022-08-12
Regulation of the Financial Market Authority on Profit Participation in Health Insurance
The Austrian Financial Market Authority issued this regulation to govern profit-sharing mechanisms for health insurance policies similar to life assurance that include premium refunds or profit shares. It mandates that insurers allocate at least 85% of a defined minimum assessment basis to policyholders, while strictly detailing the calculation of this basis through specific income, expense, and reserve adjustments. The rules apply to actuarial bases submitted after June 30, 2007, and require management to determine profit participation amounts based on actuarial opinions and annual financial statements.
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