Document ID: chunk:federal_register_of_legislation:F2023L00709:body:0:p8
Version: federal_register_of_legislation:F2023L00709
Segment Type: other
Provision Reference: 
Character Range: 19884–22803

to a minimum of $5 million.

R

Risk charge components  The risk charge components, have the same meaning as in, and must be calculated in accordance with, GPS 114. These are calculated by determining the fall in the capital base of the Level 2 insurance group in seven stress tests.

T

Total OCL Insurance Risk Charge  The risk charge for outstanding claims risk relates to the risk that the value of net outstanding claims liabilities (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 must be determined in accordance with GPS 115.

Total PL Insurance Risk Charge   This is the Insurance Risk Charge in respect of premiums liability (PL) risk, which relates to the risk that the value of the net PL is greater than the value determined in accordance with GPS 340. It also 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 determined in accordance with GPS 115.

Specific Instructions

Table 1: Prescribed Capital Amount

Reporting basis

Report information related to the licensed insurer's prescribed capital amount.

Units of measurement

Report the dollar values in this table in whole Australian dollars.

Column 1  Report the value for each of the items listed below.

 1.  Insurance Risk Charge
 Item 1    Insurance Risk Charge is a derived item and is calculated as the sum of items 1.1 and 1.2.

 Item 1.1  Report the Total OCL Insurance Risk Charge.

 Item 1.2  Report the Total PL Insurance Risk Charge.

2.     Insurance Concentration Risk Charge
 Item 2  Report the Insurance Concentration Risk Charge.

3.     Asset Risk Charge
 Item 3    Report the Asset Risk Charge.

 Item 3.1  Report the Asset Risk Charge - aggregated risk charge component.

 Item 3.2  Report the Asset Risk Charge - impact of diversification.

 Item 3.3  Report the Asset Risk Charge - tax benefit deduction.

4.     Asset Concentration Risk Charge
 Item 4  Report the Asset Concentration Risk Charge.

5.     Operational Risk Charge
 Item 5    Report the Operational Risk Charge.

 Item 5.1  Report the Operational Risk Charge for inwards reinsurance business (ORCI).

 Item 5.2  Report the Operational Risk Charge for business that is not inwards reinsurance (ORCNI).

6.     Aggregation benefit
 Item 6  Report the aggregation benefit.
         An aggregation benefit which would result in a decrease to the prescribed capital amount should be reported as a positive value.

7.     Adjustments to prescribed capital amount as approved by APRA
 Item 7  Report the adjustments to prescribed capital amount as approved by APRA.
         Report increases in the prescribed capital amount as positive values.

8.     Prescribed capital amount
 Item