Private health insurers must comply with prudential standards made by APRA.

A private health insurer must notify APRA if it becomes aware of a contravention by it of a prudential standard (other than a contravention that is merely of a minor or technical nature) or any other matter or occurrence that materially affects its financial position.

APRA may, on certain grounds, give a private health insurer a direction that the insurer must comply with.