Document ID: chunk:federal_register_of_legislation:F2023L00604:reg:14:p6
Version: federal_register_of_legislation:F2023L00604
Segment Type: reg
Provision Reference: reg 14 (pt 6/12)
Character Range: 22647–26286

the change in risk-free best estimate liabilities (RFBEL) (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable, as a result of applying the event stress prior to any allowance for diversification benefits between the insurance stresses.

Expected gross claims incurred                    This is expected claims incurred over the reporting period, gross of reinsurance.

                                                  This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

                                                  Claims incurred excludes any impact from strengthening / weakening of assumptions.

Expected gross premiums accrued                   This is expected premiums accrued over the reporting period, gross of reinsurance.

                                                  This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

                                                  The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the definitions of premium and accrued premium outlined in actual gross premiums accrued.

                                                  Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.

Expected gross renewal commissions incurred       This is expected renewal commissions incurred over the reporting period, gross of reinsurance. Commissions include rebates.

                                                  This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

Expected maintenance and overhead costs incurred  This is expected maintenance and overhead cost incurred over the reporting period.

                                                  This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

Expected net claims incurred                      This is expected claims incurred over the reporting period, net of reinsurance.

                                                  This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

                                                  Claims incurred excludes any impact from strengthening / weakening of assumptions.

Expected net premiums accrued                     This is expected premiums accrued over the reporting period, net of reinsurance.

                                                  This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

                                                  The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the definitions of premium and accrued premium outlined in actual gross premiums accrued.

                                                  Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not