CTHIn ForceLegislation
Health Insurance (prudential standard) determination No. 1 of 2025
Other Insurance Liabilities Risk ChargeOther Insurance Liabilities Risk Charge
Start here
Get a plain-English read of Other Insurance Liabilities Risk Charge
Turn the raw legal text into a practical explanation grounded in Health Insurance (prudential standard) determination No. 1 of 2025.
Other Insurance Liabilities Risk Charge
- The Other Insurance Liabilities Risk Charge relates to the risk that the value of other insurance liabilities will be greater than the value determined in accordance with HPS 340.
- The Other Insurance Liabilities Risk Charge is calculated as:
Other insurance liabilities at 99.5 per cent; less
Other insurance liabilities.
Where:
- Other insurance liabilities at 99.5 per cent is other insurance liabilities as defined by HPS 340 valued at a 99.5 per cent level of sufficiency. This means that, in the assessment of the private health insurer, there is no more than a 0.5 per cent probability that the actual cost will exceed this estimate.
- Other insurance liabilities is the value of other insurance liabilities determined in accordance with HPS 340.