Document ID: chunk:federal_register_of_legislation:F2023L00608:front:0:p5
Version: federal_register_of_legislation:F2023L00608
Segment Type: other
Provision Reference: 
Character Range: 11261–14284

GRS 001;

       Insurance Act means the Insurance Act 1973;

       insurer means a general insurer within the meaning of section 11 of the Insurance Act;

       Note: In this Reporting Standard, a reference to an 'authorised insurer', 'authorised insurance entity' or 'licensed insurer' is a reference to an insurer, and a reference to an 'authorised reinsurance entity' is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.

       non-APRA-authorised reinsurer means any reinsurer that is not an APRA-authorised reinsurer;

       Principal Executive Officer means the principal executive officer of the insurer, by whatever name called, and whether or not he or she is a member of the governing board of the insurer; and

       reporting period means a period mentioned in subparagraph 6(a) or 6(b) or, if applicable, paragraph 7.

    18.         Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.

Reporting Standard GRS 115.1

Premiums Liabilities - Insurance Risk Charge

General instructions

Reporting tables

Tables described in this Reporting Standard list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.

Any specific combination of values in the table must not appear on more than one row in that table when reported.

Definitions

Terms in bold italics are defined in this Definitions section of these instructions.

A

Additional policies risk charge  This is the component of the Insurance Risk Charge which relates to the risk that material net written premium, as defined in GPS 115, will be insufficient to fund the liabilities arising from that business.

                                 It is calculated by multiplying:

                                     * net written premium for material business that incepts in the next reporting period; and

                                     * PL capital factor %

C

Claims handling expenses  This item is the present value of claims handling expense (CHE) associated with the  premiums liability determined under GPS 340 (GPS 340 PL).

Class of business         Report the items in the sections of this Reporting Standard by the direct or reinsurance classes of business in accordance with GPS 001.

                          For the purpose of calculating the Insurance Risk Charge in respect of the 'Other' class of business as per GPS 001 for direct business, the Appointed Actuary is required to determine the most appropriate category (i.e. category A, B or C) in GPS 115 that this business falls within. The choice must be based on the underlying risk characteristics of the business being written.  The amounts reported in