Regulatory Alerts2022-08-12
Health Insurance Profit-Sharing Regulation (KV-GBV)
The Austrian Financial Market Authority issued this regulation to mandate profit-sharing for health insurance policies similar to life assurance, requiring a minimum 85% distribution based on a standardized assessment basis. The regulation defines this assessment basis by aggregating earned premiums, investment income, technical provisions, and operating expenses for policies utilizing actuarial bases submitted after June 30, 2007. Management must calculate and declare profit participation in annual financial statements, allocating declared profits through cash payouts, premium offsets, or reserve increases within two years of the balance sheet date.
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