Document ID: chunk:federal_register_of_legislation:F2023L00570:front:0:p13
Version: federal_register_of_legislation:F2023L00570
Segment Type: other
Provision Reference: 
Character Range: 37281–41053

Asset Concentration Risk Charge or assets which are deducted from capital base such as surplus in defined benefit superannuation funds of which the reporting Level 2 insurance group is an employer-sponsor.

                                                         Additionally, this excludes the following items from the AASB 17 balance sheet:

                                                             * insurance contract assets; and
                                                             * reinsurance contract assets.
Other liabilities subject to Asset Risk Charge           This consists of all other accounting liabilities of the reporting Level 2 insurance group not separately reported under deferred tax liabilities or derivatives (liabilities).

(Items subject to Asset Risk Charge type)                Additionally, this excludes the following items from the AASB 17 balance sheet:

                                                             * insurance contract liabilities
                                                             * reinsurance contract liabilities

Other reinsurance assets                                 This is the value of the central estimate of any asset recognised by the reporting Level 2 insurance group that relates to reinsurance other than:

                                                             * reinsurance recoverables on outstanding claims;
(Items subject to Asset Risk Charge type)                    * amounts receivable on reinsurance contracts held; and
                                                             * expected reinsurance recoveries.

P
Premiums receivable                        This is the value of unpaid premiums in relation to direct insurance business and inwards reinsurance business. Unpaid premiums include premiums that are due to be received, unpaid premiums available for collection, and premiums not yet available for collection. Insurers must include all unpaid instalment premiums.

(Items subject to Asset Risk Charge type)  This amount includes unpaid premiums in relation to unclosed business. Unclosed business refers to business written close to the balance date where acceptance of risk is prior to the balance date but there is insufficient information to accurately identify the business. This includes insurance policies that have not been processed, but for which a reporting insurer is liable at the valuation date.

                                           Premiums should be gross of reinsurance and commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts.

                                           For inwards reinsurance business, if there is a legal right of set-off within the underlying reinsurance contract, report the amount after set-off against other amounts payable to the cedant under that reinsurance contract. If the amount is a net payable position to the cedant, report the amount under claims payable. If there is not a legal right of set-off, report the amounts receivable without set-off. Also refer to the definition of claims payable.

                                           Premiums receivable is netted against insurance contract liabilities or added to insurance contact assets under AASB 17.

                                           Premiums receivable must be reduced by the amount that is likely to become uncollectable in the future.

                                           This amount must be consistent with premiums receivable reported in GRS 112.0.G.
Property stress                            This is the impact on a Level 2 insurance group's capital base of changes in property and infrastructure asset values and must be calculated in accordance