Insurance facts and figures 2007 - PwC
Insurance facts and figures 2007 - PwC
Insurance facts and figures 2007 - PwC
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
The Life Act also provides that certain reinsurance arrangements of life companies<br />
require specific approval from APRA. These are primarily contracts that contain<br />
elements of financial reinsurance. The details surrounding the application for approval<br />
are outlined in Prudential Rule No. 24.<br />
HEALTH INSURANCE<br />
RHBOs do not typically carry reinsurance. However, private health funds participate in<br />
the risk equalisation arrangements administered by PHIAC. Risk Equalisation aims to<br />
spread the burden of high cost claims across the industry to avoid the financial strain<br />
of the costs being borne by individual funds. The Risk Equalisation arrangements were<br />
updated by PHIAC effective 1 April <strong>2007</strong>.<br />
The arrangements operate by RHBOs paying a levy into a Health Benefits Risk<br />
Equalisation Trust Fund. RHBOs prepare membership <strong>and</strong> benefit data on a quarterly<br />
basis in the form of PHIAC 1 returns <strong>and</strong> submit this to PHIAC.<br />
AUTHORISED REPRESENTATIVES AND INSURANCE BROKERS<br />
Authorised representatives <strong>and</strong> insurance brokers do not require reinsurance.<br />
70
Change language