Document ID: chunk:federal_register_of_legislation:F2023L00634:body:0:p11
Version: federal_register_of_legislation:F2023L00634
Segment Type: other
Provision Reference: 
Character Range: 29543–32474

relatively significant number of claims and occur no more frequently than every three months), as determined by the Appointed Actuary.

S

Single event loss from H3 event  The single event loss from H3 event is the gross or net loss from the occurrence of a single event, where that loss is not less than the whole-of-portfolio annual (gross/net) loss with a 10 per cent probability of occurrence.

Single event loss from H4 event  The single event loss from H4 event is the gross or net loss from the occurrence of a single event, where that loss is not less than the whole-of-portfolio annual loss with a 16.7 per cent probability of occurrence.

Specific instructions

Table 1: Insurance Concentration Risk Charge

Insurance concentration risk charge (ICRC)

The insurer is not required to report each component of the ICRC where the amount determined for one or more of the components is always expected to be materially lower than the amount determined for one or more of the other components.

Units of measurement
Report values in whole Australian dollars (no decimal places).

 1.  Natural perils vertical requirement (NP VR)
 Item 1    Natural perils vertical requirement (NP VR) is a derived item and is calculated as the greater of:

                * item 1.2 less item 1.3; or
                * item 1.4;

           less:
              * item 1.5
           plus:
              * item 1.6
           less:
              * item 1.7
 Item 1.1  Report the basis for determination of NP VR value. The valid values are:

                * gross; or
                * net

 Item 1.2  Report the NP PML amount.
           The insurer must only report this item if the insurer has entered 'gross' in item 1.1.
 Item 1.3  Report the NP reinsurance recoverables amount.
           The insurer must only report this item if the insurer has entered 'gross' in item 1.1.
 Item 1.4  Report the net whole-of-portfolio loss amount.
           The insurer must only report this item if the insurer has entered 'net' in item 1.1.
 Item 1.5  Report the NP reinstatement premiums amount.

 Item 1.6  Report the NP reinstatement cost amount.

 Item 1.7  Report the other adjustments amount.

2.     Natural perils horizontal requirement (NP HR)
 Item 2    Natural perils horizontal requirement (NP HR) is a derived item and is calculated as the greater of

                * item 2.3; or
                * item 2.4

           less:
              * item 2.5.
 Item 2.1  Report the commencement date of catastrophe reinsurance program amount.

 Item 2.2  Report the end date of catastrophe reinsurance program amount.

H3 requirement

The following items relate to the H3 requirement.

 Item 2.3    H3 requirement is a derived item and is calculated as the total over the three events (across columns 1 to 3) for:
                * item 2.3.7
 Item 2.3.1  Report the basis for determination of H3 requirement. The valid values