APRA publishes updated FAQs on the capital framework for COVID-19 related disruptions
The Australian Prudential Regulation Authority (APRA) has updated the frequently asked questions (FAQs) for private health insurers on the application of the capital framework for COVID-19 related disruptions.
This follows the ongoing uncertainty associated with the impact of the pandemic on the private health insurance industry, as it continues to create difficulty in valuing the Deferred Claims Liability (DCL). As at 31 March 2021, APRA has provided insurers with the opportunity to prepare this provision independently. This guidance intends to address the considerations and communication protocols required for an insurer to prepare a prudentially sound provision for the DCL.
The FAQs are available on the APRA website at: Application of the capital framework for COVID-19 related disruptions - frequently asked questions.
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The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, mutuals, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding around $9 trillion in assets for Australian depositors, policyholders and superannuation fund members.