Standards and Legislation

 

Other Prudential Standards

Division 163 of the Private Health Insurance Act 2007 enables the Council to establish prudential standards other than the Solvency and Capital Adequacy Standards. Prudential matters are matters relating to:

(a) the conduct by private health insurers of any of their affairs in such a way as to keep themselves in a sound financial position or not to cause or promote instability in the Australian private health insurance system; or

(b) the conduct by private health insurers of any of their affairs with integrity, prudence and professional skill.

A prudential standard takes effect on the day on which it is established in the Private Health Insurance (Insurer Obligations) Rules.

Governance Standard

The development of a prudential standard on governance is seen as a key component of the Council’s expanded framework, and one that will strengthen the safety and soundness of insurers, whilst also providing greater protection for consumers.

PHIAC Circular 08/24 initiates a period of industry consultation on the development of a governance standard for the private health insurance industry.