Document ID: chunk:federal_register_of_legislation:F2023L00640:body:0:p13
Version: federal_register_of_legislation:F2023L00640
Segment Type: other
Provision Reference: 
Character Range: 34866–37828

a 16.7 per cent probability of occurrence.

Specific instructions

Table 1: Insurance Concentration Risk Charge

Insurance concentration risk charge (ICRC)

The Level 2 insurance group is not required to report each component of the ICRC where the amount determined for one or more of the components is always expected to be materially lower than the amount determined for one or more of the other components.

Region/Approach

The Level 2 insurance group must enter the region used to determine the applicable component that produces the highest ICRC in item 7 below.

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

 1.  Natural perils vertical requirement (NP VR)
 Item 1    Natural perils vertical requirement (NP VR) is a derived item and is calculated as the greater of:

                * item 1.2 less item 1.3; or
                * item 1.4;

           less:
              * item 1.5
           plus:
              * item 1.6
           less:
              * item 1.7
 Item 1.1  Report the basis for determination of NP VR value. The valid values are:

                * gross; or
                * net

 Item 1.2  Report the NP PML amount.
           The Level 2 insurance group must only report this item if the Level 2 insurance group has entered 'gross' in item 1.1.
 Item 1.3  Report the NP reinsurance recoverables amount.
           The Level 2 insurance group must only report this item if the Level 2 insurance group has entered 'gross' in item 1.1.
 Item 1.4  Report the Net whole-of-portfolio loss amount.
           The Level 2 insurance group must only report this item if the Level 2 insurance group has entered 'net' in item 1.1.
 Item 1.5  Report the NP reinstatement premiums amount.

 Item 1.6  Report the NP reinstatement cost amount.

 Item 1.7  Report the other adjustments amount.

2.     Natural perils horizontal requirement (NP HR)
 Item 2    Natural perils horizontal requirement (NP HR) is a derived item and is calculated as the greater of

                * item 2.3; or
                * item 2.4

           less:
              * item 2.5.
 Item 2.1  Report the commencement date of catastrophe reinsurance program amount.

 Item 2.2  Report the end date of catastrophe reinsurance program amount.

H3 requirement
The following items relate to the H3 requirement.
 Item 2.3    H3 requirement is a derived item and is calculated as the total over the three events (across columns 1 to 3) for:
                * item 2.3.7
 Item 2.3.1  Report the basis for determination of H3 requirement. The valid values are:

                  * gross; or
                  * net

 Item 2.3.2  Report the single event loss from H3 event amount.

The following columns are to be report for item 2.3.3 to item 2.3.7:

 Column 1  Report the amount for the first event.

 Column 2  Report the amount for the second event.

 Column 3  Report the amount for the third event.

 Item 2.3.3