This Prudential Standard requires a private health insurer to maintain adequate capital against the risks associated with asset concentration in its activities. The ultimate responsibility for the prudent management of capital of a private health insurer rests with its Board of directors. The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. This Prudential Standard sets out the method for calculating the Asset Concentration Risk Charge. This charge is one of the components of the prescribed capital amount for private health insurers.

This Reporting Standard sets out the requirements for the provision of information to APRA relating to a private health insurer’s Asset Concentration Risk Charge. It includes associated specific instructions and must be read in conjunction with Prudential Standard HPS 117 Capital Adequacy: Asset Concentration Risk Charge (HPS 117).