Document ID: chunk:federal_register_of_legislation:F2023L00600:front:0:p5
Version: federal_register_of_legislation:F2023L00600
Segment Type: other
Provision Reference: 
Character Range: 11117–14726

on more than one row in that table when reported.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

A

Additional deficiency from prescribed servicing expense stress  This is the additional deficiency arising (if any) in management fees relative to servicing expenses from the application of the servicing expense stress over and above the expected deficiency as determined in expected deficiency (before prescribed multiplier).

(Insurance Risk Charge component)

Adjusted policy liabilities (gross of reinsurance)              This is the total adjusted policy liabilities determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112),  gross of reinsurance.

(Insurance Risk Charge component)

Adjusted policy liabilities (net of reinsurance)                This is the total adjusted policy liabilities determined in accordance with LPS 112, net of reinsurance.

(Insurance Risk Charge component)

E

Expected deficiency (before prescribed multiplier)  This is the expected deficiency in management fees and the servicing expenses expected to arise over the period of 12 months subsequent to the reporting date.

(Insurance Risk Charge component)

Expected deficiency (post prescribed multiplier)    This is the expected deficiency in management fees received relative to the servicing expenses incurred over the next 12-month period, post the application of the prescribed multiplier.

(Insurance Risk Charge component)

Expected management fees                            This is the total amount of management fees expected to be received by the management fund from benefit funds.

(Insurance Risk Charge component)                   The reported expected management fees must allow for the effect of any assumed reduction in management fees assumed under asset and/or insurance stress and should cover the period of 12 months subsequent to the reporting date.

Expected servicing expenses                         This is the amount of servicing expenses incurred by the management fund in relation to the life insurance activities of the friendly society.

(Insurance Risk Charge component)                   The reported amount should cover the period of 12 months subsequent to the reporting date.

I

Insurance benefit                          This is the type of insurance benefit that a life policy can include. Life companies must report data items by insurance benefit where required. Insurance benefit can either be:

                                               * non-participating benefits;
                                               * participating benefits; or
                                               * friendly society benefits.

                                           Non-participating benefits can either be:

                                               * non-participating benefits without entitlement to discretionary additions; or
                                               * non-participating benefits with entitlement to discretionary additions.

Insurance Risk Charge component            This is a component which forms part of the Insurance Risk Charge calculation.

Insurance Risk Charge - tax benefits       For a statutory fund or benefit fund of a life company, this is the total tax benefits arising from the increase in adjusted policy liabilities (net of reinsurance) to stressed policy liabilities (net of reinsurance) due to the application of insurance risk stresses.

(Insurance Risk Charge component)

Insurance