Document ID: chunk:federal_register_of_legislation:F2023L00727:front:0:p6
Version: federal_register_of_legislation:F2023L00727
Segment Type: other
Provision Reference: 
Character Range: 13889–16784

of business in GPS  001.

G
GPS 340 net OCL - undiscounted   This refers to the net outstanding claims liabilities (OCL) determined in accordance with Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340) but on an undiscounted basis. For avoidance of doubt, the OCL includes claims handling expenses, is net of any reinsurance and non-reinsurance recoveries and including risk margin.

M
Movement in GPS 340 net OCL - undiscounted   This refers to a movement in GPS 340 net OCL - undiscounted amount, an increase is where the prior financial year provision is insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances, the insurer increases the GPS 340 net OCL in the current financial year by adding additional provision to accommodate the losses associated with this particular prior accident year / underwriting year.

                                             A decrease in GPS 340 net OCL - undiscounted amount is where the prior financial year provision is more than is required to pay for the losses associated with this particular accident year / underwriting year. Claim payments are not to be classified as a decrease in the GPS 340 net OCL for the purposes of this table.

R
Reinsurance business  This refers to the reinsurance business written by the reporting insurer in accordance with the reinsurance classes of business 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.

U
Underwriting year  This refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid.

Y
Years  This refers to the relevant accident year or underwriting year to be reported. Individual years from current year to 10 years previous are required to be reported. More than 10 years previous are to be combined and reported.

Specific instructions

Table 1: Movement in Outstanding Claims Liabilities

Reporting basis

Report both direct classes of business and reinsurance classes of business. In relation to the reporting basis:

    * Data underlying direct classes of business (other than lenders mortgage insurance) must be based on accident year.

    * Data underlying lenders mortgage insurance business must be based on underwriting year.

    * Data underlying reinsurance business must be based on underwriting year.

    * Notwithstanding above, if an insurer has been providing data based on a basis different to the approach outlined above, continue on that basis and notify APRA.

For the purposes of this table, the OCL (on an undiscounted basis) is to be allocated across the respective time buckets