Document ID: chunk:federal_register_of_legislation:F2023L00773:front:0:p4
Version: federal_register_of_legislation:F2023L00773
Segment Type: other
Provision Reference: 
Character Range: 8495–12023

Where the adjustment relates to the transitional arrangements referred to in HPS 110, this amount should be reported as an APRA-approved adjustment amount with the APRA-approved adjustment transitional indicator reported as "Y" and the APRA-approved adjustment type reported as "Prescribed Capital Amount".

APRA-approved adjustment type    This means the type of APRA-approved adjustment.  Possible types are:

                                     * Prescribed Capital Amount;
                                     * Asset Risk Charge;
                                     * Insurance Risk Charge - OCL Risk Charge;
                                     * Insurance Risk Charge - PL Risk Charge;
                                     * Insurance Risk Charge - RE Risk Charge;
                                     * Insurance Risk Charge - Other Insurance Liabilities Risk Charge;
                                     * Insurance Risk Charge - Future Exposure Risk Charge (HIB);
                                     * Insurance Risk Charge - Future Exposure Risk Charge (HRIB);
                                     * Insurance Risk Charge - Deferred Claims Liability Risk Charge;
                                     * Asset Concentration Risk Charge; and
                                     * Operational Risk Charge.

Asset Concentration Risk Charge  The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the fund's capital base.

                                 This must be determined in accordance with Prudential Standard HPS 117 Capital Adequacy: Asset Concentration Risk Charge.

Asset Risk Charge                The Asset Risk Charge relates to the risk of adverse movements in the value of a fund's capital base due to credit or market risks. This must be determined in accordance with Prudential Standard HPS 114 Capital Adequacy: Asset Risk Charge.

G

General fund  Has the same meaning as in HPS 001.

H

Health benefits fund  Has the same meaning as in the Private Health Insurance (Prudential Supervision) Act 2015.

I
Insurance Risk Charge                                            The Insurance Risk Charge is the minimum amount of capital required to be held against insurance risks. The Insurance Risk Charge relates adverse financial impacts due to movements in existing and future claims, expenses, and other insurance risks such as adverse events.

                                                                 This must be determined in accordance with Prudential Standard HPS 115 Capital Adequacy: Insurance Risk Charge (HPS 115).

Insurance Risk Charge - Deferred Claims Liability Risk Charge    The Insurance Risk Charge - Deferred Claims Liability Risk Charge relates to the risk that the value of the deferred claims liability will be greater than the value determined in accordance with Prudential Standard HPS 340 Insurance Liability Valuation (HPS 340). This must be determined in accordance with HPS 115.

Insurance Risk Charge - Future Exposure Risk Charge (HIB)        The Insurance Risk Charge – Future Exposure Risk Charge (HIB) relates to the risk that financial performance of the health insurance business may be materially worse than expected. This must be determined