Document ID: chunk:federal_register_of_legislation:F2023L00672:body:0:p22
Version: federal_register_of_legislation:F2023L00672
Segment Type: other
Provision Reference: 
Character Range: 57305–60176

[4]  For the purposes of this requirement, reinsurance from the Australian Reinsurance Pool Corporation can be treated as having a contractually agreed reinstatement.
[5]  Where certain perils are material to an insurer but not included in its computer-based modelling techniques, an allowance for losses in respect of these perils would need to be estimated and added to the NP PML.
[6]  The net loss is the gross loss less potential reinsurance recoverables.
[7]  The first reporting period after the effective date of this Prudential Standard may be part way through the catastrophe reinsurance program treaty year. If this is the case, the insurer must determine NP HR as if the requirement to determine NP HR applied at the inception date of the catastrophe reinsurance program (ignoring any events that may have occurred between the inception date of the current catastrophe reinsurance program and the effective date of this Prudential Standard).
[8]  Where certain perils are material to an insurer but not included in its computer-based modelling techniques, an allowance for losses in respect of these perils would need to be estimated and added to the H3 loss.
[9]  The net loss is the gross loss less potential reinsurance recoverables.
[10]  Where certain perils are material to an insurer but not included in its computer-based modelling techniques, an allowance for losses in respect of these perils would need to be estimated and added to the H4 loss.
[11]  The net loss is the gross loss less potential reinsurance recoverables.
[12]  Catastrophic losses are those that give rise to a relatively significant number of claims and occur no more frequently than every three months. The Appointed Actuary needs to consider historical data over an appropriate period of time.
[13]  Net premiums liability central estimate provision will be determined in accordance with Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340).
[14]  The diversified risk margin will already be determined in accordance with GPS 340 and does not need to be split into a catastrophic and attritional loss component. The diversified risk margin will be a dollar amount determined by applying the percentage risk margin to the amount determined in sub-paragraph (b).
[15]  The Premiums Liability Risk Charge will be the prescribed 'Premiums Liability Risk Capital Factor' for that class of business from Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge multiplied by the amount determined in sub-paragraph (c).
[16]  The determination of OA PML must consider the nature of products provided, losses that may lead to an aggregation of multiple per-risk or per-policy losses arising from a common dependent source, the potential for multiple classes of insurance and/or portfolios to be impacted from this common dependent source and whether the upper