Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p9
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 22806–25859

date;
 2.           claims that have been incurred, but not yet reported; and
 3.           claims that have been administratively settled, but which may be reopened.
    For each outstanding claims liabilities and premiums liabilities, the claims component is to be calculated gross of reinsurance and non-reinsurance recoverables.
    [GI, PHI] claims handling expenses are the costs that a regulated institution expects to incur in the management and settling of claims, which includes an appropriate allocation of business overheads such as claims department and corporate office overheads. For the outstanding claims liability, this includes the cost of future claims management, claims administration expenses for all incurred claims and the establishment expenses of not yet reported claims. For premiums liabilities, this includes claims management and claims administration expenses for claims establishment and run-off.
    [PHI] claims incurred are the value of all insurance claims incurred during the period for the relevant class of business, gross of risk equalisation, net of reinsurance. This is to include the value of services provided in lieu of a benefit payment and movements in the central estimate of outstanding claims liabilities.
    [GI] classes of business, including direct classes of business and reinsurance classes of business, are defined in Attachment B to this Prudential Standard.
    [LI] commencement means the time from which a life company is at risk under a policy.
    [ADI] Common Equity Tier 1 Capital is as defined in Prudential Standard APS 111 Capital Adequacy: Measurement of Capital.
    [GI] Common Equity Tier 1 Capital is as defined in Prudential Standard GPS 112 Capital Adequacy: Measurement of Capital.
    [LI] Common Equity Tier 1 Capital is as defined in Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
    [PHI] Common Equity Tier 1 Capital is as defined in Prudential Standard HPS 112 Capital Adequacy: Measurement of Capital.
    [PHI] company means:
 1.           a company within the meaning of the Corporations Act; and
 2.           a constitutional corporation.
    [PHI] complying health insurance product has the same meaning as in the PHIPS Act.
    [ADI] conglomerate group is as defined in Attachment A to this Prudential Standard.
    [PHI] constitutional corporation has the same meaning as in the PHIPS Act.
    [GI] controlled entity of a non-operating holding company or insurer, for the purposes of the prudential requirements applicable to Level 2 insurance groups, means a subsidiary as defined in Australian Accounting Standards for the purposes of determining the entities included in consolidated general purpose financial statements.
    [GI] corporate agent has the same meaning as in the Insurance Act.
    [GI] corporate captive means an insurer that:
 1.           is owned by a single company or a group of related bodies corporate; and
 2.           exists for the purpose of underwriting risks of the parent company or members of a group of