Document ID: chunk:federal_register_of_legislation:F2023L00607:reg:8:p1
Version: federal_register_of_legislation:F2023L00607
Segment Type: reg
Provision Reference: reg 8 (pt 1/2)
Character Range: 47067–49908

8  OCL Capital Factor %                                                Percentage                  Report the OCL capital factor %.

Table 6: OCL Insurance Risk Charge - Group adjustments

Reporting basis

Report the group adjustments not recognised in other tables. Adjustments that result in a reduction in the GPS 340 OCL should be reported as negative values.

Units of measurement

Report values in whole Australian dollars.
Column 1   Report the value for each of the group adjustments items below.

           Adjustments that result in a reduction to the OCL should be reported as negative values.

 1.  Group adjustments
Item 1.1   Report the gross OCL - central estimate (excluding claims handling expenses) amount.

Item 1.2   Report the claims handling expenses amount.

Item 1.3   Report the gross OCL - diversified risk margin amount.

Item 1.4   Report the net OCL - non-reinsurance recoveries (central estimate) amount.

Item 1.5   Report the net OCL - reinsurance recoverables (central estimate) amount.

Item 1.6   Report the net OCL - central estimate (including claims handling expenses) amount.

Item 1.7   Report the net OCL - diversified risk margin amount.

Item 1.8   Report the net OCL - total amount.

Item 1.9   Report the adjusted net outstanding claims liabilities amount.

Item 1.10  Report the OCL Insurance Risk Charge amount.

Specific instructions B – by region

Reporting by region

If the Level 2 insurance group does have a reporting adjustment to report on an 'Australia by region' rather than an 'Australia by class of business' basis, it must complete Tables 7, 8, 9 and 10 below (and not Tables 1, 2, 3, 4, 5 and 6). Tables 8 and 9 require the GPS 340 OCL of the Australian business to be reported as a single region and the international business to be reported by region.
The Level 2 insurance group must complete Table 9 if it adopts derived valuations for the GPS 340 OCL based on accounting records of the group for Australian and international business (subject to meeting the GPS 340 requirements).
For both Australian and international business, while class of business is not required to be reported on these tables, Level 2 insurance groups are expected to map their business to the classes of business as defined in GPS 001 in order to assign an insurance risk capital charge. The details of the mapping and the calculation of the Insurance Risk Charge for businesses are to be provided as a reporting supplement to APRA.
Where there is reinsurance between regions, regions are to be reported on a separate basis. That is, the region directly assuming the risks must report as direct business. The region receiving reinsurance must treat this as direct business as well. Where reinsurance occurs between entities in one region, the reinsurance transaction is to be eliminated