Regulatory AlertsHPS 118 Capital Adequacy: Operational Risk Charge
The Australian Prudential Regulation Authority issued Prudential Standard HPS 118 to require all private health insurers to maintain adequate capital against operational risks. The standard mandates the use of a prescribed formula based on accrued premium growth and insurance liabilities to calculate the minimum Operational Risk Charge. This requirement applies separately to each health benefits fund and general fund starting from 1 July 2023.
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