The Australian Prudential and Regulation Authority (APRA) has announced that it has taken action against Medibank Private following an APRA review of its major cyber incident in October 2022. Background here and here.

APRA has imposed an increase in Medibank’s capital adequacy requirement of $250 million, effective from 1 July 2023.

It will be applied to Medibank’s operational risk charge under the new Private Health Insurance (PHI) Capital Framework.

It will remain in place until an agreed remediation program of work is completed by Medibank to APRA’s satisfaction.

Medibank Private says it has sufficient existing capital to meet this adjustment.

APRA will also conduct a targeted technology review of Medibank, with a particular focus on governance and risk culture.

APRA says that while Medibank has already addressed the specific control weaknesses which permitted unauthorised access to its systems, it still has further work to do across a number of areas to further strengthen its security environment and data management.

The OAIC’s investigation into Medibank’s data breach is ongoing.

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