Document ID: chunk:federal_register_of_legislation:F2023L00678:body:0:p2
Version: federal_register_of_legislation:F2023L00678
Segment Type: other
Provision Reference: 
Character Range: 2915–6010

is that it must:
       * make an annual reinsurance declaration based on the 'inception date rule' and 'two month rule' specified in this Prudential Standard and submit the declaration to APRA at the same time as the Reinsurance Arrangements Statement.

Table of Contents
Authority
Application and commencement
Level 2 insurance groups
Interpretation
Compliance on an insurance group basis
Reinsurance management
Reinsurance Management Strategy
Reinsurance Arrangements Statement
Documentation of reinsurance arrangements
The reinsurance declaration
The 'inception date rule'
The 'two month rule'
Reinsurance declaration qualification
Limited Risk Transfer Arrangements
Adjustments and exclusions
Previous exercise of discretion
Attachment A – Limited Risk Transfer Arrangements
Attachment B – Level 2 insurance Groups

Authority
     1. This Prudential Standard is made under section 32 of the Insurance Act 1973 (the Act).

Application and commencement
2.             This Prudential Standard applies to each:
(a)          general insurer authorised under the Act (insurer); and
(b)          Level 2 insurance group as defined in Prudential Standard GPS 001 Definitions (GPS 001).
    Where a requirement applies to a Level 2 insurance group, the requirement is imposed on the parent entity of the Level 2 insurance group.

3.             This Prudential Standard applies to insurers and Level 2 insurance groups (regulated institutions) from 1 July 2023.

Level 2 insurance groups
4.             Certain adjustments to the reinsurance management requirements outlined in this Prudential Standard apply to Level 2 insurance groups. These adjustments are set out in Attachment B.

Interpretation
5.             Terms that are defined in GPS 001 appear in bold the first time they are used in this Prudential Standard.
6.             Where this Prudential Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.
7.             For the purposes of this Prudential Standard, a reference to the regulated institution's 'operations' is a reference to:
(a)          its operations in Australia and overseas through a branch for an insurer; or
(b)          its operations in Australia and overseas for a Level 2 insurance group.

Compliance on an insurance group basis
8.             Subject to paragraphs 9 and 10, an insurer that is part of an insurance group may meet certain requirements on a group basis, provided that the Board of the insurer is satisfied that the requirements of this Prudential Standard are met in respect of the insurer. These requirements are:
(a)          a 'Reinsurance Management Strategy' (ReMS) in accordance with paragraphs 19 to 27; and
(b)          a 'Reinsurance Arrangements Statement' (Reinsurance Statement) in accordance with paragraphs 28 to 31.
9.             An insurer may only meet the requirement referred to in paragraph 8(b) 7on an insurance group basis where the ReMS covers the insurance group as a whole, in accordance with paragraph 8(a).
10.         Where APRA is of the view that