APRA releases updated FAQs on the capital framework for COVID-19 related disruptions
The Australian Prudential Regulation Authority (APRA) has published a new set of frequently asked questions (FAQs) for private health insurers on the application of the capital framework for COVID-19 related disruptions.
In the FAQs released today, APRA is moving towards a principles-based approach which places greater reliance on insurers to manage their specific risks and calculate their Deferred Claims Liability (DCL).
APRA is relaxing its guidance considering the experience gained by insurers after two years’ worth of collecting data on the impact of the pandemic and thanks to the progress of valuation techniques that will allow insurers to perform their DCL calculations independently.
The new 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.