Document ID: chunk:federal_register_of_legislation:F2024L01523:body:0:p10
Version: federal_register_of_legislation:F2024L01523
Segment Type: other
Provision Reference: 
Character Range: 26182–29126

APRA with a forecast showing the projected future capital position (including PCR) after the proposed capital reductions. The forecast should extend for at least two years.
 4.          A private health insurer must satisfy APRA that its capital base will remain adequate for its future needs after a proposed reduction.

Materiality
 1.          A private health insurer may take into account materiality when calculating its capital base and prescribed capital amount or the capital base and prescribed capital amount of each of its funds. Particular values or components are considered material to the overall result of a calculation if misstating or omitting them would produce results likely to be misleading to the users of the information.

Notification requirements
 1.          A private health insurer must inform APRA as soon as practicable of:
         1.           any breach or prospective breach of its PCR or the PCR of any of its funds;
         2.           any significant departure from its ICAAP;
         3.           any significant adverse changes in the capital base or PCR of the private health insurer or any of its funds; or
         4.           other necessary notification events under the Act.
    The notice must include any remedial actions taken or planned to be taken to address the situation and the timing of these actions.

Adjustments and exclusions
 1.          APRA may, by notice in writing to a private health insurer, adjust or exclude a specific requirement in this Prudential Standard in relation to that private health insurer.

Transition
 1.          From 1 July 2023, the ICAAP requirements in paragraphs 8 to 16 apply to
         1.           SFIs; and
         2.           any private health insurer that is a non-SFI but APRA has determined in writing for prudential reasons, the ICAAP requirements in paragraphs 8 to 16 should apply to it.
 2.          For all private health insurers that are non-SFIs and are not subject to an APRA determination under paragraph 53(b), the ICAAP requirements in paragraphs 8 to 16 apply from 1 July 2025.
 3.          Subject to paragraph 2 of Attachment A, a private health insurer must notify APRA by 30 June 2023, and provide the data (using a template provided by APRA) described in paragraphs 3(a) and 3(b) of Attachment A by 30 September 2023, if they adopt the transitional arrangements set out in Attachment A. A private health insurer that adopts the transitional arrangements set out in Attachment A may only do so until 30 June 2025.

Determinations made under previous prudential standards
 1.          An exercise of APRA's discretion (such as an approval, waiver or direction) under a previous version of this Prudential Standard continues to have effect as though exercised pursuant to a corresponding power (if any) exercisable by APRA under this Prudential Standard.

Attachment A – Transitional Arrangements
 1.              The