Prudential Standard HPS 001 Definitions.pdf

Here are the key points summarized:

Definitions

• Private health insurer: an entity that provides private health insurance
• Health benefits fund: a fund established by a private health insurer to provide health insurance benefits
• Subordinated debt: debt that is subordinated to other debts in the event of liquidation

Prudential Requirements

• Prudential requirements include Act, prudential standards, APRA rules, reporting standards, and conditions imposed at registration
• Private health insurers must comply with these requirements to ensure solvency and adequate capital

Risk Management Framework

• Risk management framework: a framework that sets out the risk management approach and procedures for identifying, assessing, and managing risks

Remuneration Policy

• Remuneration policy: a policy that sets out the remuneration structure and practices for employees of a private health insurer

Senior Management Responsibilities

• Senior management responsibilities: the responsibilities of making or participating in making decisions that affect the whole or a substantial part of the business

Significant Financial Institution (SFI)

• SFI: a private health insurer with total assets exceeding AUD 3 billion or determined as such by APRA

Single Equivalent Units (SEUs)

• SEUs: a unit used to calculate the size margin of a health benefits fund, based on the number of people insured under a policy

Size Margin

• Size margin: the lesser of the margin calculated using the formula 0.75 × (SEUs) ^ -0.16 or 0.25

These key points summarize the main concepts and definitions outlined in the document.