Document ID: chunk:federal_register_of_legislation:F2023L00697:front:0:p6
Version: federal_register_of_legislation:F2023L00697
Segment Type: other
Provision Reference: 
Character Range: 13588–16924

that can be reported for each field have also been provided.

Any specific combination of values in the table must not appear on more than one row in that table when reported.

Reporting entity

Tables 1 - 6 as described in 'Specific instructions A – by Class of Business' are to be completed by the parent entity of a Level 2 insurance group as defined in GPS 001 where the Level 2 insurance group does not have a reporting adjustment to report on an 'Australia by region' rather than 'Australia by class of business' basis. If the Level 2 insurance group has the reporting adjustment, it must complete Tables 7 - 10 as described below in 'Specific instructions B – by Region'.

Consolidation at Level 2 should cover the Level 2 insurance group as defined under GPS 001.

Definitions

Terms in bold italics are defined in this Definitions section of these instructions.

A

Additional policies risk charge                            This is the component of the Insurance Risk Charge which relates to the risk that material net written premium, as defined in GPS 115, will be insufficient to fund the liabilities arising from that business.

                                                           This must be calculated by multiplying:

                                                               * net written premium for material business that incepts in the next reporting period; and
                                                               * PL capital factor %

Adjusted net premiums liabilities                          This is the derived valuation of premiums liabilities based on accounting records for the group after allowing for adjustments required by GPS 340.

                                                           It is calculated as the sum of:

                                                               * net liabilities for remaining coverage; and
                                                               * adjustment to AASB net liabilities for remaining coverage.

Adjustment to AASB net liabilities for remaining coverage  This is the adjustment required as a consequence of the assessment by the Group Actuary to ensure the derived valuations of premiums liabilities (PL) based on accounting records for the group are appropriate and exceed (are more conservative than) the requirements of GPS 340.

B

Basis of preparation  Provide the basis by which outstanding claims liabilities (OCL) or PL have been reported. The options provided are:

                          * GPS 340 basis;
                          * AASB basis; or
                          * combination of GPS 340 and AASB basis.

Business type         The business type refers to either the direct business or reinsurance business written by the reporting Level 2 insurance group.

                      The business types are:

                          * direct business; and
                          * reinsurance business.

C

Claims handling expenses   This item is the present value of claims handling expense (CHE) associated with the PL determined under GPS 340 (GPS 340 PL).

                           Level 2 insurance groups may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome) to report this item if this item is not