Document ID: chunk:federal_register_of_legislation:F2023L00585:body:0:p7
Version: federal_register_of_legislation:F2023L00585
Segment Type: other
Provision Reference: 
Character Range: 16709–19845

unclosed business.

ORCNI - Central estimate of net insurance liabilities                                   This is the value, relating to the business written directly by the reporting Level 2 insurance group, of the central estimate component of OCL and PL, net of any recoveries that relate to the gross OCL and gross PL, determined in accordance with GPS 340.

                                                                                        Under GPS 340, a Level 2 insurance group may use accounting entries to determine its insurance liabilities. For the purposes of this item, where accounting entries have been used to determine net insurance liabilities, the Level 2 insurance group must use the accounting net insurance liabilities instead of the net central estimate.

ORCNI - GWP for the 12 months ending on the date 12 months prior to the reporting date  This is the value of written premium revenue, relating to business written directly by the reporting Level 2 insurance group, recognised for the 12 months ending on the date that is 12 months prior to the reporting date.

                                                                                        Written premium revenue is the amount charged in relation to accepting risk from the insured. For the purposes of the Operational Risk Charge calculation, this includes levies imposed by state and territory governments, and revenue relating to portfolio transfers and unclosed business.

ORCNI - GWP for the 12 months ending on the reporting date                              This is the value of written premium revenue, relating to business written directly by the reporting Level 2 insurance group, recognised for the 12 months ending on the reporting date

                                                                                        Written premium revenue is the amount charged in relation to accepting risk from the insured. For the purposes of the Operational Risk Charge calculation, this includes levies imposed by state and territory governments, and revenue relating to portfolio transfers and unclosed business.

Specific instructions

Reporting basis
Report items relating to the Operational Risk Charge

Report all items gross of any associated outwards reinsurance expense.

Intra-group exposures
The Operational Risk Charge for a Level 2 insurance group is calculated after consolidation of intra-group exposures. Units of measurement

This values in this table must be completed in whole Australian dollars.

Table 1: Operational Risk Charge
 Column 1  Report the value for each of the items listed below.

 1.  Operational Risk Charge for inwards reinsurance business (ORCI)

 Item 1    The ORCI is a derived item and is calculated using the formula in accordance with GPS 118.

 Item 1.1  Report the ORCI - GWP for the 12 months ending on the reporting date.

 Item 1.2  Report the ORCI - GWP for the 12 months ending on the date 12 months prior to the reporting date.

 Item 1.3  Report the ORCI - central estimate of net insurance liabilities.

2.     Operational Risk Charge for business that is not inwards