Document ID: chunk:federal_register_of_legislation:F2023L00604:reg:14:p9
Version: federal_register_of_legislation:F2023L00604
Segment Type: reg
Provision Reference: reg 14 (pt 9/12)
Character Range: 33589–37749

applying the mortality random stress prior to any allowance for diversification benefits between the insurance stresses.

N

New business          This is new business commenced during reporting period. New business is defined in LRS 750.0 Claims and Disputes. Life companies that adopt a short term contract boundary for Accounting Standard AASB 17 Insurance Contracts and treat renewals as new business should not follow this approach for this reporting standard.

(Insurance business)

O

Other components of termination value   This is the value of any other components that must be included in the termination value, as defined in Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112), of the respective APRA product group, on top of the past premium liabilities and the excess premium refunds.

                                        Other components reported should have allowance for surrender values paid in the event of voluntary termination, consistent with the requirement of Prudential Standard LPS 360 Termination Values, Minimum Surrender Values and Paid-up Values.

Other past premium liability component  This is the present value of other past premium liability components of RFBEL that do not fall under the categories of CICP reserve, IBNR reserve, RBNA reserve and URR.

P

Past  premium liabilities (gross of reinsurance)                    This is the value of unstressed RFBEL arising from premiums expected to be received after the reporting date, gross of reinsurance.

                                                                    Past  premium liabilities (gross of reinsurance) is calculated as the sum of (all gross of reinsurance):

                                                                         * Claims in Course of Payment (CICP) reserve;
                                                                         * Incurred But Not Reported (IBNR) reserve;
                                                                         * Reported But Not Assessed (RBNA) reserve;
                                                                         * Unexpired Risk Reserve (URR); and
                                                                         * other past premium liability component.

                                                                    This is part of RFBEL (gross of reinsurance).

Past premium liabilities net of reinsurance                         This is the value of unstressed RFBEL arising from premiums expected to be received after the reporting date, net of reinsurance.

                                                                    Past  premium liabilities (net of reinsurance) is calculated as the sum of (all net of reinsurance):

                                                                         * Claims in Course of Payment (CICP) reserve;
                                                                         * Incurred But Not Reported (IBNR) reserve;
                                                                         * Reported But Not Assessed (RBNA) reserve;
                                                                         * Unexpired Risk Reserve (URR); and
                                                                         * other past premium liability component.

                                                                    This is part of RFBEL (net of reinsurance).

Policy owners' retained profits (PRP)                               This is policy owner's retained profits (PRP) as defined in the Life Act.

Premium refund in excess of unexpired risk reserve                  This is the value of any premium refund payable (in excess of the unexpired risk reserve held) at policy's termination based on the policy document's contractual agreement. The premium refund must be present-valued to the reporting date.

Present value of expected benefit payments                          This is the present value of all expected future benefit payments after the reporting date.

                                                                    This is part of