Document ID: chunk:federal_register_of_legislation:F2023L00600:front:0:p6
Version: federal_register_of_legislation:F2023L00600
Segment Type: other
Provision Reference: 
Character Range: 14452–16773

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 Risk Charge - tax benefits (FS)  For the management fund of a friendly society, this is the tax benefits arising from the inclusion of the servicing expense reserve in liabilities. Admissibility of tax benefits will be assessed in calculating the prescribed capital amount.

(Insurance Risk Charge component)

L

Life company fund  This means the type of life company fund. Possible types are:

                       * statutory fund; and
                       * benefit fund.

R

Reduction in management fees assumed under asset and/or insurance stress  This is the amount of reduction in management fees to be paid by the benefit funds to the management fund that has been assumed in response to the asset risk and insurance risk stress scenarios.

(Insurance Risk Charge component)

S

Stressed policy liabilities (gross of reinsurance)  This is the total value of stressed policy liabilities across all product groups within the fund that is determined in accordance with LPS 115, gross of reinsurance.

(Insurance Risk Charge component)

Stressed policy liabilities  (net of reinsurance)   This is the total value of stressed policy liabilities across all product groups within the fund that is determined in accordance with LPS 115, net of reinsurance.

(Insurance Risk Charge component)

T

Total servicing expense reserve    This is the servicing expense reserve component of the Insurance Risk Charge.

(Insurance Risk Charge component)

Specific instructions

Table 1: Insurance Risk Charge

Reporting basis

This table applies to life companies including friendly societies. Data must be submitted at the level of each individual statutory fund for life insurers and each benefit fund for friendly societies. Report all information as at the reporting date.

Units of measurement

The values in this table must be competed in whole Australian dollars (no decimal place).

   Name                                    Valid values                                                                     Description