Document ID: chunk:federal_register_of_legislation:F2023L00602:front:0:p6
Version: federal_register_of_legislation:F2023L00602
Segment Type: other
Provision Reference: 
Character Range: 13849–17599

to follow this basis.

                          For reinsurance business, the classes of business are to be aggregated by the Category and Reinsurance Type as per Table 2 of Attachment A in GPS 115.

D

Direct business                     Report direct business written directly by the reporting insurer in accordance with the direct classes of business in GPS  001.

Discount on net outstanding claims  This is the value of discounting on the GPS 340 net outstanding claims. This includes the impact of discounting the net actuarial central estimate of outstanding claims (excluding claims handling expenses and excluding risk margin).

G

Gross OCL - central estimate (excluding claims handling expenses)  This is the value, as at the relevant date, of the central estimate component of OCL, excluding claims handling expenses (CHE), gross of any recoveries, determined in accordance with GPS 340.

                                                                   The central estimate will be measured as the present value of the future expected payments, i.e. discounted for future investment income, determined in accordance with GPS 340. The central estimate is intended to reflect the mean value in the range of possible values for the outcome (that is, the mean of the distribution of probabilistic outcomes), and so does not include any risk margin.

Gross OCL - diversified risk margin                                This is the value, as at the relevant date, of the diversified risk margin component of OCL, including CHE, gross of any recoveries, determined in accordance with GPS 340. The diversified risk margin refers to the risk margin that has been applied to the class of business after allowance for diversification across the whole insurance portfolio.

Gross OCL - total (including claims handling expenses)             This is the total of the central estimate and diversified risk margin for OCL, including CHE, gross of any recoveries, determined in accordance with GPS 340.

                                                                   It is calculated as the sum of:

                                                                       * gross OCL - central estimate (excluding claims handling expenses);
                                                                       * claims handling expenses; and
                                                                       * gross OCL - diversified risk margin.

N

Net OCL - central estimate (excluding claims handling expenses)  This is the value, as at the relevant date, of the central estimate component of the GPS 340 OCL, excluding claims handling expenses, net of any reinsurance and non-reinsurance recoveries.

                                                                 It is calculated as:

                                                                     * gross OCL – central estimate (excluding claims handling expenses);

                                                                 Less:

                                                                     * net OCL - non-reinsurance recoveries (central estimate); and
                                                                     * net OCL - reinsurance recoverables (central estimate).

Net OCL - central estimate (including claims handling expenses)  This is the value, as at the relevant date, of the central estimate component of OCL, including claims handling expenses, net of any reinsurance and non-reinsurance recoveries, determined in accordance with GPS 340.

                                                                 It is calculated as the sum of:

                                                                     * net OCL - central