Document ID: chunk:federal_register_of_legislation:F2023L00720:front:0:p7
Version: federal_register_of_legislation:F2023L00720
Segment Type: other
Provision Reference: 
Character Range: 16824–19811

applicable) and the current ICRC of the insurer. A general insurer may use simplifying assumptions as long as those assumptions do not have a material impact on the overall capital coverage outcome.

Total impact on Insurance Risk Charge                          Report the increase in Insurance Risk Charge due to the failure of the reinsurer reported in name of counterparty (reinsurer). This takes into account the impact on the OCL and PL risk charges as a result of the impact of a reinsurer failure on the net outstanding claims provisions and net premiums liabilities. A general insurer may use simplifying assumptions as long as those assumptions do not have a material impact on the overall capital coverage outcome.

Total impact on Operational Risk Charge                        Report the increase in the Operational Risk Charge due to the failure of the reinsurer reported in name of counterparty (reinsurer). A general insurer may use simplifying assumptions as long as those assumptions do not have a material impact on the overall capital coverage outcome.

Total impact on prescribed capital amount                      Report the total change in prescribed capital amount due to the failure of the reinsurer reported in name of counterparty (reinsurer). The total change in the prescribed capital amount is the change in each component of the prescribed capital amount reported in column 8 total impact on insurance risk charge to column 12 total impact on operational risk charge after applying the aggregation benefit in accordance with Prudential Standard GPS 110 Capital Adequacy.

U

Unassigned Reinsurer Identifier  The identifier for the counterparty reported in name of counterparty (reinsurer) not listed on the reinsurer identifier list. This includes individual unassigned reinsurers and Lloyd's of London syndicates.

Specific instructions

Exposure analysis by reinsurance counterparty

GRS 460.1 must be completed by all general insurers.

General insurers must complete Table 1 if name of counterparty (reinsurer) is on the reinsurer identifier list on APRA's website.

General insurers must complete Table 2 if name of counterparty (reinsurer) is:

    * not on the reinsurer identifier list; or
    * a Lloyd's of London syndicate.

For Table 1 and Table 2, report individual counterparties where the failure of that counterparty results in a five percent or greater change in capital coverage of the general insurer when compared to the capital coverage at the end of the financial year.

For the purposes of GRS 460.1, failure means that the counterparty will no longer meet their obligation to the general insurer. This means that the general insurer makes no recovery from on-balance sheet reinsurance assets and the reinsurer is not replaced on any of its previous or current reinsurance programs.

Reporting Practice Guide GRPG 460 Reinsurance Counterparty Data Collection provides guidance to assist general insurers in completing GRS