Document ID: chunk:federal_register_of_legislation:F2023L00607:front:0:p10
Version: federal_register_of_legislation:F2023L00607
Segment Type: other
Provision Reference: 
Character Range: 26802–29999

which applies to the total of all the classes for each region.

OCL Insurance Risk Charge  The risk charge for outstanding claims risk relates to the risk that the value of net OCL determined in accordance with GPS 340 will be insufficient to cover associated net claim payments and any associated claim expenses as they fall due.

                           This is to be determined in accordance with GPS 115.

                           For a Level 2 insurance group, under the GPS 340 basis, it is calculated as:

                                *     net OCL – total;

                           multiplied by:

                                *     OCL capital factor %

                           For a Level 2 insurance group, under the AASB basis, it is calculated as:

                                *     adjusted net outstanding claims liabilities;

                           multiplied by:

                                *     OCL capital factor %

                           Apply a zero risk charge where net OCL – total or adjusted net outstanding claims liabilities is negative.

R

Reinsurance business                                                This refers to the reinsurance business written by the reporting Level 2 insurance group in accordance with the reinsurance classes of business listed in GPS 001 and GPS 115. 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.

Reinsurance contract assets - Assets for incurred claims            Report assets for incurred claims that are presented as reinsurance contract assets.

                                                                    Report this item in accordance with AASB 17 Appendix A, AASB 17.78 (c) Disclosure, AASB 17.100 (c) Disclosure and AASB 101.54 (da) Disclosure.

Reinsurance contract liabilities - Liabilities for incurred claims  Report liabilities for incurred claims (being the liability equivalent of the assets for incurred claims) that are presented as reinsurance contract liabilities.

                                                                    Report this item in accordance with AASB 17 Appendix A, AASB 17.78 (d) Disclosure, AASB 17.100 (c) Disclosure and AASB 101.54 (ma) Disclosure.

Specific instructions A – by Class of Business

Reporting by class of business

If the Level 2 insurance group does not have a reporting adjustment to report on an 'Australia by region' rather than an 'Australia by class of business' basis, it must complete Tables 1, 2, 3, 4, 5 and 6 below (and not Tables 7, 8, 9 and 10). Tables 2, 3, 4 and 5 require the GPS 340 OCL of the Australian business to be reported by class of business and the international business to be reported by region.
The Level 2 insurance group must complete Tables 4 and 5 if it adopts derived valuations for the GPS 340 OCL based on accounting records of the group for Australian and international business respectively (subject to meeting the GPS 340 requirements).
For international regions, class of business data is not reported in these tables. Level 2 insurance groups, however, will be required to map