Document ID: chunk:federal_register_of_legislation:F2024L01053:front:0:p8
Version: federal_register_of_legislation:F2024L01053
Segment Type: other
Provision Reference: 
Character Range: 20093–23089

[GI] Category A insurer means an insurer incorporated in Australia. This category excludes all insurers falling within any of the other categories. For the purposes of clarification, wholly-owned subsidiaries of corporate groups that are not insurance groups fall into this category where they do not already fall into another category of insurer under this Prudential Standard. Category A insurers could be mutual companies or shareholder companies.
    [GI] Category B insurer means an insurer that is:
 1.           incorporated in Australia; and
 2.           a subsidiary of a local or foreign insurance group.
    Category B insurers are part of a local or foreign insurance group. They could be subsidiaries of mutual or shareholder companies. An insurance group captive is not a Category B insurer.
    [GI] Category C insurer means a 'foreign general insurer' defined under subsection 3(1) of the Insurance Act. A Category C insurer is a foreign insurer operating as a foreign branch in Australia and could be a branch of a foreign mutual or shareholder company.
    [GI] Category D insurer means an insurer incorporated in Australia that:
 1.           is owned by an industry or a professional association, or by the members of the industry or professional association, or a combination of both; and
 2.           only underwrites business risks of the members of the association or those who are eligible, under the articles of association or constitution of the association, to become members of the association; but
 3.           is not a medical indemnity insurer as defined under the Medical Indemnity Act 2002.
    Category D insurers are often referred to as 'association captives' and could be mutual companies or shareholder companies.
    [GI] Category E insurer means an insurer incorporated in Australia that is a:
 1.           corporate captive as defined in this Prudential Standard; or
 2.           partnership captive as defined in this Prudential Standard.
    Category E insurers, often referred to as 'sole parent captives', will generally be shareholder companies.
    [ADI] CCR refers to counterparty credit risk.
    [PHI] central estimate means an estimate of the mean of the range of possible outcomes of any calculation required under Prudential Standard HPS 110 Capital Adequacy.
    [ADI] Cheques Act refers to the Cheques Act 1986.
    [PHI] Chief executive officer has the same meaning as in the PHIPS Act.
    [PHI] claims component is the central estimate of claims that a private health insurer expects to incur. For the outstanding claims liabilities, this includes:
 1.           claims payable for claims that have been reported, but are not yet settled at balance date;
 2.           claims that have been incurred, but not yet reported; and
 3.           claims that have been administratively settled, but which may be reopened.
    For each outstanding claims liabilities and premiums liabilities, the claims component is to be calculated gross