Document ID: chunk:federal_register_of_legislation:F2023L00641:body:0:p14
Version: federal_register_of_legislation:F2023L00641
Segment Type: other
Provision Reference: 
Character Range: 46400–50635

340.

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.

                                                                       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 amount 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.

Premiums receivable expected to be received in 6 months or less        This represents premiums receivable that are expected to be received in 6 months or less as at the reporting date (e.g. from insurance brokers or other intermediaries).

Premiums receivable expected to be received in more than 6 months      This represents premiums receivable that are expected to be received in more than 6 months as at the reporting date (e.g. from insurance brokers or other intermediaries).

Premiums receivable on unclosed business                               This represents premiums receivable for business written close to the balance date where acceptance of the risk is prior to the balance date, but there is insufficient information to accurately identify this business.

Prescribed capital amount                                              Prescribed capital amount is defined in GPS 110.

Prescribed capital amount coverage                                     For a non-category C insurer, prescribed capital amount coverage is calculated as:

                                                                           * capital base

                                                                       divided by:

                                                                           * prescribed capital amount.

                                                                       For a category C insurer, prescribed capital amount coverage is calculated as:

                                                                           * adjusted net assets in Australia

                                                                       divided by:

                                                                           * prescribed capital amount.
Prescribed capital amount coverage (net assets)                        For a non-category C insurer, prescribed capital amount coverage (net assets) is calculated as the sum of:

                                                                           * Additional Tier 1 Capital;
                                                                           * Tier 2 Capital; and
                                                                           * net assets