Document ID: chunk:federal_register_of_legislation:F2023L00608:front:0:p9
Version: federal_register_of_legislation:F2023L00608
Segment Type: other
Provision Reference: 
Character Range: 24955–27466

have not been included in the PL, but for which the insurer has already committed to cover.

                                                                                     The materiality of the business that incepts in the next reporting period should be determined in accordance with the Australian Accounting and Auditing Standards subject to APRA's discretion.

P

PL capital factor %             This is the premiums liability risk capital factor applicable to each class of business as per GPS 115.

PL Insurance Risk Charge        This is the component of the Insurance Risk Charge which relates to the risk that the value of the net PL is greater than the value determined in accordance with GPS 340.

                                The PL Insurance Risk Charge is calculated for each combination of business type and class of business by multiplying:

                                    * net PL – total; and
                                    * PL capital factor %.

                                Apply a zero risk charge where net PL – total is negative.

Policy administration expenses  This item is the present value of PAE associated with the GPS 340 PL.

R

Reinsurance business     Report reinsurance business written by the reporting insurer in accordance with the reinsurance classes of business GPS 001 and GPS 115. Aggregate the classes of business by the category and reinsurance type in GPS 115.

Reinsurance commissions  This item is the present value of reinsurance commissions relating to reinsurance held, associated with the GPS 340 PL. Examples include but are not limited to reinsurance exchange commissions and profit commissions.

                         This excludes any acquisition commission expenses that are not reported as part of the GPS 340 PL. This also excludes commissions.

Specific instructions

Table 1: Premiums Liabilities - Insurance Risk Charge

Reporting basis

Report the components of the GPS 340 PL by class of business for direct business and reinsurance business.

Units of measurement

Report values in whole Australian dollars (no decimal places).

Were actuarial services used to complete this return?

Use the drop-down selection to report whether actuarial services were used to complete this table. If actuarial services were used input 'Yes' otherwise input 'No'.

    Name                                                                                                   Valid values                          Description