This Prudential Standard requires a private health insurer to maintain adequate capital against the risks associated with its activities. Some of the key requirements of this Prudential Standard are that a private health insurer must have an Internal Capital Adequacy Assessment Process; maintain required levels of capital within each of its funds and for the private health insurer; determine each fund’s prescribed capital amount; and to seek APRA’s approval for certain capital reductions.

This Reporting Standard sets out the requirements to provide information to APRA about a private health insurer’s prescribed capital amount. It includes associated specific instructions must be read in conjunction with Prudential Standard HPS 110 Capital Adequacy (HPS 110).