Review of Solvency and Capital Adequacy Standards
Review of Capital Standards
PHIAC’s review of the capital standards aims to ensure that the risks faced by insurers are consistently and accurately reflected, and to improve both insurers’ engagement with those risks and the quality of information available to PHIAC in support of its regulation of the industry.
The consultation period on proposed changes to the capital standards applicable to the private health insurance industry was initiated on 2 July 2012. This page sets out any updates and relevant information to the review process.
The contact officer for the review is:
Hadyn Bernau
PHIAC Actuary
02 6215 7914
hadyn.bernau@phiac.gov.au
Updated Quantitative Impact Study (QIS1a)
On 1 August 2012, PHIAC issued further guidance relating to the completion of the QIS. The guidance is contained within the following spreadsheet:
Link to QIS1a (.xlsx)
Link to QIS1a (.xls)
The QIS is an important element in PHIAC’s reform of the capital standards. The purpose of the QIS is twofold; firstly, to enable insurers to better understand the nature and extent of changes to capital requirements and the practices applied to determine those requirements; secondly, to provide PHIAC with qualitative and quantitative information not presently available, but which will be important to the reform process. The QIS is to be based on the position of the health benefits fund as at 30 June 2012.
QIS1a is an updated version of the QIS initially issued on 2 July 2012. It responds to a number of queries for insurers by providing clarification on the calculation of a number of components of the capital requirements.
QIS1a is a very high level study of potential changes in capital requirements. In the second round of consultation PHIAC will issue QIS2, which will be a much more detailed study. QIS2 will be intended to represent the likely form of the proposed new PHIAC2 returns.
Enquiries regarding the QIS, and completed QIS forms, should be directed to:
Matthew Crane
Actuarial Analyst
02 6215 7956
matthew.crane@phiac.gov.au
Discussion Papers - 2 July 2012
PHIAC issued the following discussion papers on 2 July 2012 and invited submissions by 1 October 2012: