The Australian Prudential Regulation Authority (APRA) and the Private Health Insurance Administration Council (PHIAC) have signed a Memorandum of Understanding setting out a framework for cooperation between the two agencies in areas of common interest.

APRA prudentially supervises banks and other deposit-taking institutions, life and general insurance companies, friendly societies and superannuation entities, and implements policies in the performance of that role.

The PHIAC is responsible for the administration and enforcement of specific parts of the National Health Act 1953 regarding the supervision and regulation of the private health insurance industry. As part of its responsibilities, PHIAC supervises and regulates registered organisations and health benefit funds. Some of these health benefit funds are run by friendly societies, which are jointly regulated with APRA.

The Memorandum of Understanding recognises the importance of close coordination and cooperation between the two organisations.

In particular, it provides for exchange of relevant information and liaison on issues of joint interest, including emerging issues in the insurance industry, consultative processes with industry, the exchange of expertise, and the sharing of relevant information.

APRA has agreed to similar arrangements with Treasury, the Reserve Bank, the Australian Taxation Office, the Australian Competition and Consumer Commission, the Australian Securities and Investments Commission and the Motor Accidents Authority of NSW in relation to coordination of their respective responsibilities.

The Memorandum of Understanding is attached (pdf 25KB).

For further information contact:

Ms Prue Morris (APRA):	Ms Trish Cassidy (PHIAC):
(02) 9210 3352	(02) 6285 3134