The Board of Private Health Insurance Administration Council (PHIAC) has approved an application by Medibank Private Limited (MPL) to become a ‘for-profit’ health insurer.

The conversion in status will take effect from 1 October 2009.

Under s.126-42(3) of the Private Health Insurance Act 2007 , PHIAC must approve such an application if it is satisfied, within 30 days after the application is made, that the conversion scheme would not in substance involve the demutualisation of the applicant insurer.

MPL’s Application indicated that the conversion would not change policyholders’ current premiums and entitlements. PHIAC says it was satisfied that the conversion did not constitute a demutualisation.