Document ID: chunk:federal_register_of_legislation:F2023L00723:front:0:p12
Version: federal_register_of_legislation:F2023L00723
Segment Type: other
Provision Reference: 
Character Range: 37253–40251

in discount on OCL amount.
Non-reinsurance recoveries - PL amount   This includes the value of recoveries under arrangements, other than reinsurance arrangements, receivable by the health benefits fund or general fund associated with the PL, gross of any provisions for depreciation or impairment. It is determined in accordance with HPS 340. This item is to be reported gross of any discounting, as all discounting is to be reported in discount on PL amount.

O
OCL at 75th probability of adequacy      This is a derived item and is calculated as the sum of:
                                              * central estimate of OCL; and
                                              * risk margin at 75th probability of adequacy - OCL amount.
OCL Risk Charge                          This is a derived item and is the Insurance Liability Risk Charge in respect of outstanding claims risk, which relates to the risk that the value of OCL is greater than the value determined in accordance with HPS 340. It is calculated as: (OCL at 75th probability of adequacy minus settled but not paid claims - OCL amount) multiplied by outstanding claims risk size margin, as defined by HPS 115.
Other Insurance Liabilities Risk Charge  This is a derived item and is the Insurance Liability Risk Charge in respect of other insurance liabilities, which relates to the risk that the value of other insurance liabilities is less than the value determined in accordance with HPS 340. It is the sum of each individual other insurance liability at 99.5th POA minus the sum of each individual other insurance liability at 75th POA.

P
PL at 75th probability of adequacy          This is a derived item and is calculated as the sum of:
                                                 * central estimate of PL; and
                                                 * risk margin at 75th probability of adequacy - PL amount.
PL Risk Charge                              This is a derived item and is the Insurance Liability Risk Charge in respect of premiums liabilities risk, which relates to the risk that the value of PL is greater than the value determined in accordance with HPS 340.

                                            For HIB, this is calculated as PL at 75th probability of adequacy for HIB multiplied by HIB stress %.

                                            For HRIB, this is calculated as PL at 75th probability of adequacy for HRIB multiplied by HRIB stress %.

                                            The PL Risk Charge is the sum of HIB and HRIB.
Policy administration expenses - PL amount  This is the value, as at the relevant date, of the policy administration expenses associated with those claims included within the central estimate of PL determined in accordance with HPS 340. This item is to be reported gross of any discounting, as all discounting is to be reported in discount on PL amount.
Private health insurer business type        This is either health insurance business