Document ID: chunk:federal_register_of_legislation:F2023L00723:front:0:p6
Version: federal_register_of_legislation:F2023L00723
Segment Type: other
Provision Reference: 
Character Range: 16865–20084

of OCL, determined in accordance with HPS 340. This includes claims payable for:
                                            * claims that have been reported, but are not yet settled at balance date;
                                            * claims that have been incurred, but not yet reported; and
                                            * claims that have been administratively settled, but which may be reopened.
                                       This should not include any other unpaid amounts which are certain, including those that have been settled but not paid. These amounts are to be reported separately.

                                       This is to be reported gross of any recoveries and discounting, which are reported separately.
Claims component - PL amount           This is the value, as at the relevant date, of the claims component of the central estimate of PL, determined in accordance with HPS 340.

                                       This is to be reported gross of any Risk Equalisation or reinsurance recoveries and discounting, which are reported separately.
Claims handling expenses - OCL amount  This is the value, as at the relevant date, of the claims handling expenses associated with those claims included within the central estimate of OCL, determined in accordance with HPS 340. This item is to be reported gross of any discounting, as all discounting is to be reported in discount on OCL amount.
Claims handling expenses - PL amount   This is the value, as at the relevant date, of the claims handling expenses associated with those claims included within the central estimate of PL, determined in accordance with HPS 340. This item is to be reported gross of any discounting, as all discounting is to be reported in discount on PL amount.
Claims incurred                        This refers to the relevant forecast of claims incurred, as defined in HPS 001.

                                       Report this item net of any reinsurance for the purpose of this reporting standard.
Claims incurred (AES) amount           This is the forecast of claims incurred after the Adverse Event Stress, as defined in HPS 115, for that month.

                                       For general treatment, this item is also equal to benefits incurred (AES) amount.
Claims incurred (CE) amount            This is the central estimate forecast of claims incurred for that month.

                                       For general treatment and health-related insurance business, this item is also equal to benefits incurred (CE) amount.
Claims incurred (MA) amount            The insurer is required to report this item for months 10, 11 and 12 only. This is to be determined by adjusting the claims incurred (pre-MA) for management actions, as defined in HPS 115.

                                       Claims incurred (MA) must only reflect management actions that are appropriate and justified and comply with HPS 115. Management actions should reflect the insurer's expectations and not be limited to the extent that these result in an insurance profit. This constraint will be applied separately in insurance profits forecast after management actions amount.