Health Insurance (prudential standard) determination No. 9 of 2023 (Cth)

Health Insurance (prudential standard) determination No. 9 of 2023

Prudential Standard HPS 340 Insurance Liability Valuation

Private Health Insurance (Prudential Supervision) Act 2015

I, Helen Rowell, a delegate of APRA, under subsection 92(1) of the Private Health Insurance (Prudential Supervision) Act 2015 determine Prudential Standard HPS 340 Insurance Liability Valuation, in the form set out in the Schedule, which applies to all private health insurers.

This instrument commences on 1 July 2023. Dated: 24 May 2023

[Signed]

Helen Rowell Deputy Chair

Interpretation

In this instrument:

APRA means the Australian Prudential Regulation Authority. private health insurer has the meaning given in section 4 of the Act.

Schedule

Prudential Standard HPS 340 Insurance Liability Valuation, comprises the document commencing on the following page.

Prudential Standard HPS 340

Insurance Liability Valuation Objectives and key requirements of this Prudential Standard This Prudential Standard sets out requirements for the valuation of insurance liabilities of a private health insurer. The ultimate responsibility for the valuation of insurance liabilities rests with the Board of the private health insurer. A private health insurer must value its insurance liabilities in accordance with the principles and methodology set out in this Prudential Standard. For the purposes of the capital standards and reporting requirements under the Financial Sector (Collection of Data) Act 2001 (FSCODA), a private health insurer's insurance liabilities must be valued in accordance with this Prudential Standard.

Table of Contents Authority Application and commencement Interpretation Valuation of insurance liabilities Non-reinsurance recoveries Adjustments and exclusions Attachment A - Reinsurance

Authority 1. This Prudential Standard is made under subsection 92(1) of the Private Health Insurance (Prudential Supervision) Act 2015 (the Act).