7AReasonableness of premiums

7A Reasonableness of premiums

In deciding whether the premium payable by an insured under a contract of insurance for particular cover is reasonable, regard is to be had to: (a) the nature of the risks being assumed by the insurer; and (b) the claims handling expenses, and other administrative expenses, the insurer has incurred and can reasonably be expected to incur; and (c) the expenses the insurer can reasonably be expected to incur in obtaining appropriate reinsurance; and (d) the expenses the insurer can reasonably be expected to incur in capital raising and prudential compliance; and (e) the amount that represents a reasonable profit margin for the insurer; and (f) the amount of any relevant taxes or statutory charges payable by the insurer; and (g) the information provided, or not provided, to the insurer by the client in relation to matters relevant to assessing the risk being assumed by the insurer; and (h) the amount that represents provisioning for future liabilities for medical indemnity cover that may be required to be offered under section 23 for a premium that does not reflect the cost of providing that medical indemnity cover; and (i) the receipt, or probable receipt, of Commonwealth assistance in relation to provision of the medical indemnity cover; and (j) such other matters as are specified in regulations made for the purposes of this paragraph.