{"id":"F2023L00599","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 111 of 2023","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-111-of-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104262,"registerId":"commonwealth-F2023L00599-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard LRS 001","sectionType":"part","heading":"Reporting Standard LRS 001","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\n## Reporting Standard LRS 001\n\n# Reporting Requirements\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.\n\nAuthority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\nPurpose\n\n2. Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.\n\nApplication and Commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.\n\nGeneral Instructions\n\n4. Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.\n\nPeriods for Provision of Returns\n\n5. A life company is to provide information required under reporting standards:\n\n(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and\n\n(c) in the case of annual information - three months after the end of the reporting period to which the information relates.\n\n6. APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.\n\nTransition\n\n7. The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:\n\nold LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;\n\nold reporting standard means a reporting standard which has been revoked; and\n\ntransitional reporting period means a reporting period:\n\n(a) which ended before 1 July 2023; and\n\n(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nInterpretation\n\n8. In this reporting standard:\n\nAASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;\n\nannual information means information required to be provided in respect of each financial year of a life company;\n\nfinancial year has the meaning in the Corporations Act 2001;\n\nhalf yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and\n\nquarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.\n\n9. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.","sortOrder":0},{"sectionNumber":"Reporting Requirements","sectionType":"part","heading":"Reporting Requirements","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\n## Reporting Standard LRS 001\n\n# Reporting Requirements\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.\n\nAuthority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\nPurpose\n\n2. Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.\n\nApplication and Commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.\n\nGeneral Instructions\n\n4. Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.\n\nPeriods for Provision of Returns\n\n5. A life company is to provide information required under reporting standards:\n\n(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and\n\n(c) in the case of annual information - three months after the end of the reporting period to which the information relates.\n\n6. APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.\n\nTransition\n\n7. The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:\n\nold LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;\n\nold reporting standard means a reporting standard which has been revoked; and\n\ntransitional reporting period means a reporting period:\n\n(a) which ended before 1 July 2023; and\n\n(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nInterpretation\n\n8. In this reporting standard:\n\nAASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;\n\nannual information means information required to be provided in respect of each financial year of a life company;\n\nfinancial year has the meaning in the Corporations Act 2001;\n\nhalf yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and\n\nquarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.\n\n9. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.","sortOrder":1},{"sectionNumber":"Objective of this Reporting Standard","sectionType":"division","heading":"Objective of this Reporting Standard","content":"### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.\n\nAuthority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\nPurpose\n\n2. Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.\n\nApplication and Commencement\n\n3. This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.\n\nGeneral Instructions\n\n4. Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.\n\nPeriods for Provision of Returns\n\n5. A life company is to provide information required under reporting standards:\n\n(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and\n\n(c) in the case of annual information - three months after the end of the reporting period to which the information relates.\n\n6. APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.\n\nTransition\n\n7. The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:\n\nold LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;\n\nold reporting standard means a reporting standard which has been revoked; and\n\ntransitional reporting period means a reporting period:\n\n(a) which ended before 1 July 2023; and\n\n(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nInterpretation\n\n8. In this reporting standard:\n\nAASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;\n\nannual information means information required to be provided in respect of each financial year of a life company;\n\nfinancial year has the meaning in the Corporations Act 2001;\n\nhalf yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and\n\nquarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.\n\n9. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.","sortOrder":2},{"sectionNumber":"Life Insurance Reporting Requirements","sectionType":"subdivision","heading":"Life Insurance Reporting Requirements","content":"ATTACHMENT A\n\n#### Life Insurance Reporting Requirements\n\n#### General Instruction Guide\n\n# 1. Introduction\n\nThe General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.\n\nDetailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[\\[1\\]](#_ftn1).\n\nThis General Instruction Guide covers all the reporting standards for life companies.\n\n# 2. Reporting level\n\nThis section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:\n\n Each statutory fund for a life insurer and each approved benefit fund for a friendly society;\n The shareholder fund for a life insurer and the management fund for a friendly society; and\n The life company (i.e. company as whole for both life insurers & friendly societies).\n\n# 3. Basis of preparation\n\n# 3.1. Year to date\n\nThe financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.\n\n# 3.2. General accounting basis\n\nIn completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.\n\n# 3.3. Actuarial valuation basis\n\nAll actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).\n\nAPRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.\n\n# 3.4. Fair value approach\n\nFor capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.\n\nFor accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.\n\n# 3.5. Units of measurement\n\nUnless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n# 3.6. Definitions\n\nDefinitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.\n\nDefinitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.\n\nAdditionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.\n\n# 3.7. Related parties\n\nWhere this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.\n\n# 4. Audit requirements\n\nThe reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.\n\n# 5. APRA Product Group classification\n\nFor consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.\n\nThe following tables specify the product groups applicable to life insurers and friendly societies.\n\n# 5.1. Life insurers\n\nThe following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.\n\nWithin the relevant reporting standard, APRA has listed the product groups that apply.\n\n| Ref. | Product Group | Notes |\n| ----- | -------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |\n| L1 | Conventional | Includes whole of life policies and endowment policies. |\n| L2 | Annuity with longevity risk | Annuities providing periodic payments that are dependent on the continuance of human life. |\n| L3 | Individual death – Stepped premium | Death benefit within policies issued on an individual basis with stepped premium. |\n| L3_1 | Individual lump sum risk – Stepped premium | Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L4 | Individual TPD – Stepped premium | TPD benefit within policies issued on an individual basis with stepped premium. |\n| L5 | Individual trauma – Stepped premium | Trauma benefit within policies issued on an individual basis with stepped premium |\n| L6 | Individual disability income insurance – Stepped premium | Disability income insurance benefit within policies issued on an individual basis with stepped premium. |\n| L7 | Individual death – Other | Death benefit within policies issued on an individual basis with non-stepped premium. |\n| L7_1 | Individual lump sum risk – Other | Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L8 | Individual TPD – Other | TPD benefit within policies issued on an individual basis with non-stepped premium. |\n| L9 | Individual trauma – Other | Trauma benefit within policies issued on an individual basis with non-stepped premium |\n| L10 | Individual disability income insurance – Other | Disability income insurance benefit within policies issued on an individual basis with non-stepped premium. |\n| L11 | Group death | Death benefit within policies issued on a group (wholesale) basis. |\n| L11_1 | Group lump sum risk | Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits. |\n| L12 | Group TPD | TPD benefit within policies issued on a group (wholesale) basis. |\n| L13 | Group trauma | Trauma benefit within policies issued on a group (wholesale) basis. |\n| L14 | Group disability income insurance | Disability income insurance benefit within policies issued on a group (wholesale) basis. |\n| L15 | Investment linked | Investment linked policies where policy benefits are associated with the performance of the supporting assets. |\n| L16 | Investment policy with discretionary additions | Investment account business within the meaning of section 14 of the Life Act. |\n| L17 | Other investment policy | Includes all other investment policies not specifically categories in L15 and L16. |\n| L18 | Annuity without longevity risk | Annuities providing periodic payments that are not dependent on the continuance of human life. |\n| L19 | Other | Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand. |\n\nRefer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.\n\nRefer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.\n\nStepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.\n\n# 5.2. Friendly Societies\n\n| Ref. | Product Group | Notes |\n| ---- | ----------------------------------------------- | ------------------------------------------------------------------------------------------------------------- |\n| F1 | Education | |\n| F2 | Investment Account | As defined in section 14 of the Life Insurance Act 1995. |\n| F3 | Annuity and Superannuation | |\n| F4 | Defined Benefit Risk | All products classified as defined benefit, including defined benefit funeral products |\n| F5 | Capital Guaranteed Defined Contribution Funeral | Capital guaranteed funeral products that are classified as Defined Contribution. |\n| F6 | Investment Linked | As defined in section 14 of the Life Insurance Act 1995. |\n| F7 | Unallocated Benefit Fund Reserve | Value of benefit funds which has not been allocated to either the benefit fund members or to management fund. |\n| F8 | Members’ Capital and Retained Profits | Members’ capital and retained profits allocated to members. |\n\nThe classification of participating and non-participating benefits does not apply to friendly societies.\n\n# 6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)\n\nLife insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.\n\n- Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.\n- Principle 2: A systematic and rational approach must be applied.\n- Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.\n- Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.\n- Principle 5: A single allocation approach need not necessarily be applied.\n\nAllocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.\n\nFor clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).","sortOrder":3},{"sectionNumber":"General Instruction Guide","sectionType":"subdivision","heading":"General Instruction Guide","content":"ATTACHMENT A\n\n#### Life Insurance Reporting Requirements\n\n#### General Instruction Guide\n\n# 1. Introduction\n\nThe General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.\n\nDetailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[\\[1\\]](#_ftn1).\n\nThis General Instruction Guide covers all the reporting standards for life companies.\n\n# 2. Reporting level\n\nThis section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:\n\n Each statutory fund for a life insurer and each approved benefit fund for a friendly society;\n The shareholder fund for a life insurer and the management fund for a friendly society; and\n The life company (i.e. company as whole for both life insurers & friendly societies).\n\n# 3. Basis of preparation\n\n# 3.1. Year to date\n\nThe financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.\n\n# 3.2. General accounting basis\n\nIn completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.\n\n# 3.3. Actuarial valuation basis\n\nAll actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).\n\nAPRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.\n\n# 3.4. Fair value approach\n\nFor capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.\n\nFor accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.\n\n# 3.5. Units of measurement\n\nUnless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n# 3.6. Definitions\n\nDefinitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.\n\nDefinitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.\n\nAdditionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.\n\n# 3.7. Related parties\n\nWhere this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.\n\n# 4. Audit requirements\n\nThe reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.\n\n# 5. APRA Product Group classification\n\nFor consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.\n\nThe following tables specify the product groups applicable to life insurers and friendly societies.\n\n# 5.1. Life insurers\n\nThe following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.\n\nWithin the relevant reporting standard, APRA has listed the product groups that apply.\n\n| Ref. | Product Group | Notes |\n| ----- | -------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |\n| L1 | Conventional | Includes whole of life policies and endowment policies. |\n| L2 | Annuity with longevity risk | Annuities providing periodic payments that are dependent on the continuance of human life. |\n| L3 | Individual death – Stepped premium | Death benefit within policies issued on an individual basis with stepped premium. |\n| L3_1 | Individual lump sum risk – Stepped premium | Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L4 | Individual TPD – Stepped premium | TPD benefit within policies issued on an individual basis with stepped premium. |\n| L5 | Individual trauma – Stepped premium | Trauma benefit within policies issued on an individual basis with stepped premium |\n| L6 | Individual disability income insurance – Stepped premium | Disability income insurance benefit within policies issued on an individual basis with stepped premium. |\n| L7 | Individual death – Other | Death benefit within policies issued on an individual basis with non-stepped premium. |\n| L7_1 | Individual lump sum risk – Other | Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L8 | Individual TPD – Other | TPD benefit within policies issued on an individual basis with non-stepped premium. |\n| L9 | Individual trauma – Other | Trauma benefit within policies issued on an individual basis with non-stepped premium |\n| L10 | Individual disability income insurance – Other | Disability income insurance benefit within policies issued on an individual basis with non-stepped premium. |\n| L11 | Group death | Death benefit within policies issued on a group (wholesale) basis. |\n| L11_1 | Group lump sum risk | Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits. |\n| L12 | Group TPD | TPD benefit within policies issued on a group (wholesale) basis. |\n| L13 | Group trauma | Trauma benefit within policies issued on a group (wholesale) basis. |\n| L14 | Group disability income insurance | Disability income insurance benefit within policies issued on a group (wholesale) basis. |\n| L15 | Investment linked | Investment linked policies where policy benefits are associated with the performance of the supporting assets. |\n| L16 | Investment policy with discretionary additions | Investment account business within the meaning of section 14 of the Life Act. |\n| L17 | Other investment policy | Includes all other investment policies not specifically categories in L15 and L16. |\n| L18 | Annuity without longevity risk | Annuities providing periodic payments that are not dependent on the continuance of human life. |\n| L19 | Other | Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand. |\n\nRefer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.\n\nRefer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.\n\nStepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.\n\n# 5.2. Friendly Societies\n\n| Ref. | Product Group | Notes |\n| ---- | ----------------------------------------------- | ------------------------------------------------------------------------------------------------------------- |\n| F1 | Education | |\n| F2 | Investment Account | As defined in section 14 of the Life Insurance Act 1995. |\n| F3 | Annuity and Superannuation | |\n| F4 | Defined Benefit Risk | All products classified as defined benefit, including defined benefit funeral products |\n| F5 | Capital Guaranteed Defined Contribution Funeral | Capital guaranteed funeral products that are classified as Defined Contribution. |\n| F6 | Investment Linked | As defined in section 14 of the Life Insurance Act 1995. |\n| F7 | Unallocated Benefit Fund Reserve | Value of benefit funds which has not been allocated to either the benefit fund members or to management fund. |\n| F8 | Members’ Capital and Retained Profits | Members’ capital and retained profits allocated to members. |\n\nThe classification of participating and non-participating benefits does not apply to friendly societies.\n\n# 6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)\n\nLife insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.\n\n- Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.\n- Principle 2: A systematic and rational approach must be applied.\n- Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.\n- Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.\n- Principle 5: A single allocation approach need not necessarily be applied.\n\nAllocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.\n\nFor clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).","sortOrder":4},{"sectionNumber":"1. Introduction","sectionType":"part","heading":"1. Introduction","content":"# 1. Introduction\n\nThe General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.\n\nDetailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[\\[1\\]](#_ftn1).\n\nThis General Instruction Guide covers all the reporting standards for life companies.","sortOrder":5},{"sectionNumber":"2. Reporting level","sectionType":"part","heading":"2. Reporting level","content":"# 2. Reporting level\n\nThis section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:\n\n Each statutory fund for a life insurer and each approved benefit fund for a friendly society;\n The shareholder fund for a life insurer and the management fund for a friendly society; and\n The life company (i.e. company as whole for both life insurers & friendly societies).","sortOrder":6},{"sectionNumber":"3. Basis of preparation","sectionType":"part","heading":"3. Basis of preparation","content":"ATTACHMENT A\n\n#### Life Insurance Reporting Requirements\n\n#### General Instruction Guide\n\n# 1. Introduction\n\nThe General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.\n\nDetailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[\\[1\\]](#_ftn1).\n\nThis General Instruction Guide covers all the reporting standards for life companies.\n\n# 2. Reporting level\n\nThis section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:\n\n Each statutory fund for a life insurer and each approved benefit fund for a friendly society;\n The shareholder fund for a life insurer and the management fund for a friendly society; and\n The life company (i.e. company as whole for both life insurers & friendly societies).\n\n# 3. Basis of preparation\n\n# 3.1. Year to date\n\nThe financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.\n\n# 3.2. General accounting basis\n\nIn completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.\n\n# 3.3. Actuarial valuation basis\n\nAll actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).\n\nAPRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.\n\n# 3.4. Fair value approach\n\nFor capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.\n\nFor accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.\n\n# 3.5. Units of measurement\n\nUnless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.\n\n# 3.6. Definitions\n\nDefinitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.\n\nDefinitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.\n\nAdditionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.\n\n# 3.7. Related parties\n\nWhere this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.\n\n# 4. Audit requirements\n\nThe reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.\n\n# 5. APRA Product Group classification\n\nFor consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.\n\nThe following tables specify the product groups applicable to life insurers and friendly societies.\n\n# 5.1. Life insurers\n\nThe following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.\n\nWithin the relevant reporting standard, APRA has listed the product groups that apply.\n\n| Ref. | Product Group | Notes |\n| ----- | -------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |\n| L1 | Conventional | Includes whole of life policies and endowment policies. |\n| L2 | Annuity with longevity risk | Annuities providing periodic payments that are dependent on the continuance of human life. |\n| L3 | Individual death – Stepped premium | Death benefit within policies issued on an individual basis with stepped premium. |\n| L3_1 | Individual lump sum risk – Stepped premium | Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L4 | Individual TPD – Stepped premium | TPD benefit within policies issued on an individual basis with stepped premium. |\n| L5 | Individual trauma – Stepped premium | Trauma benefit within policies issued on an individual basis with stepped premium |\n| L6 | Individual disability income insurance – Stepped premium | Disability income insurance benefit within policies issued on an individual basis with stepped premium. |\n| L7 | Individual death – Other | Death benefit within policies issued on an individual basis with non-stepped premium. |\n| L7_1 | Individual lump sum risk – Other | Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L8 | Individual TPD – Other | TPD benefit within policies issued on an individual basis with non-stepped premium. |\n| L9 | Individual trauma – Other | Trauma benefit within policies issued on an individual basis with non-stepped premium |\n| L10 | Individual disability income insurance – Other | Disability income insurance benefit within policies issued on an individual basis with non-stepped premium. |\n| L11 | Group death | Death benefit within policies issued on a group (wholesale) basis. |\n| L11_1 | Group lump sum risk | Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits. |\n| L12 | Group TPD | TPD benefit within policies issued on a group (wholesale) basis. |\n| L13 | Group trauma | Trauma benefit within policies issued on a group (wholesale) basis. |\n| L14 | Group disability income insurance | Disability income insurance benefit within policies issued on a group (wholesale) basis. |\n| L15 | Investment linked | Investment linked policies where policy benefits are associated with the performance of the supporting assets. |\n| L16 | Investment policy with discretionary additions | Investment account business within the meaning of section 14 of the Life Act. |\n| L17 | Other investment policy | Includes all other investment policies not specifically categories in L15 and L16. |\n| L18 | Annuity without longevity risk | Annuities providing periodic payments that are not dependent on the continuance of human life. |\n| L19 | Other | Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand. |\n\nRefer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.\n\nRefer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.\n\nStepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.\n\n# 5.2. Friendly Societies\n\n| Ref. | Product Group | Notes |\n| ---- | ----------------------------------------------- | ------------------------------------------------------------------------------------------------------------- |\n| F1 | Education | |\n| F2 | Investment Account | As defined in section 14 of the Life Insurance Act 1995. |\n| F3 | Annuity and Superannuation | |\n| F4 | Defined Benefit Risk | All products classified as defined benefit, including defined benefit funeral products |\n| F5 | Capital Guaranteed Defined Contribution Funeral | Capital guaranteed funeral products that are classified as Defined Contribution. |\n| F6 | Investment Linked | As defined in section 14 of the Life Insurance Act 1995. |\n| F7 | Unallocated Benefit Fund Reserve | Value of benefit funds which has not been allocated to either the benefit fund members or to management fund. |\n| F8 | Members’ Capital and Retained Profits | Members’ capital and retained profits allocated to members. |\n\nThe classification of participating and non-participating benefits does not apply to friendly societies.\n\n# 6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)\n\nLife insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.\n\n- Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.\n- Principle 2: A systematic and rational approach must be applied.\n- Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.\n- Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.\n- Principle 5: A single allocation approach need not necessarily be applied.\n\nAllocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.\n\nFor clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).","sortOrder":7},{"sectionNumber":"3.1. Year to date","sectionType":"part","heading":"3.1. Year to date","content":"# 3.1. Year to date\n\nThe financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.","sortOrder":8},{"sectionNumber":"3.2. General accounting basis","sectionType":"part","heading":"3.2. General accounting basis","content":"# 3.2. General accounting basis\n\nIn completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.","sortOrder":9},{"sectionNumber":"3.3. Actuarial valuation basis","sectionType":"part","heading":"3.3. Actuarial valuation basis","content":"# 3.3. Actuarial valuation basis\n\nAll actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).\n\nAPRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.","sortOrder":10},{"sectionNumber":"3.4. Fair value approach","sectionType":"part","heading":"3.4. Fair value approach","content":"# 3.4. Fair value approach\n\nFor capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.\n\nFor accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.","sortOrder":11},{"sectionNumber":"3.5. Units of measurement","sectionType":"part","heading":"3.5. Units of measurement","content":"# 3.5. Units of measurement\n\nUnless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.","sortOrder":12},{"sectionNumber":"3.6. Definitions","sectionType":"part","heading":"3.6. Definitions","content":"# 3.6. Definitions\n\nDefinitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.\n\nDefinitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.\n\nAdditionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.","sortOrder":13},{"sectionNumber":"3.7. Related parties","sectionType":"part","heading":"3.7. Related parties","content":"# 3.7. Related parties\n\nWhere this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.","sortOrder":14},{"sectionNumber":"4. Audit requirements","sectionType":"part","heading":"4. Audit requirements","content":"# 4. Audit requirements\n\nThe reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.","sortOrder":15},{"sectionNumber":"5. APRA Product Group classification","sectionType":"part","heading":"5. APRA Product Group classification","content":"# 5. APRA Product Group classification\n\nFor consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.\n\nThe following tables specify the product groups applicable to life insurers and friendly societies.","sortOrder":16},{"sectionNumber":"5.1. Life insurers","sectionType":"part","heading":"5.1. Life insurers","content":"# 5.1. Life insurers\n\nThe following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.\n\nWithin the relevant reporting standard, APRA has listed the product groups that apply.\n\n| Ref. | Product Group | Notes |\n| ----- | -------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |\n| L1 | Conventional | Includes whole of life policies and endowment policies. |\n| L2 | Annuity with longevity risk | Annuities providing periodic payments that are dependent on the continuance of human life. |\n| L3 | Individual death – Stepped premium | Death benefit within policies issued on an individual basis with stepped premium. |\n| L3_1 | Individual lump sum risk – Stepped premium | Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L4 | Individual TPD – Stepped premium | TPD benefit within policies issued on an individual basis with stepped premium. |\n| L5 | Individual trauma – Stepped premium | Trauma benefit within policies issued on an individual basis with stepped premium |\n| L6 | Individual disability income insurance – Stepped premium | Disability income insurance benefit within policies issued on an individual basis with stepped premium. |\n| L7 | Individual death – Other | Death benefit within policies issued on an individual basis with non-stepped premium. |\n| L7_1 | Individual lump sum risk – Other | Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits. |\n| L8 | Individual TPD – Other | TPD benefit within policies issued on an individual basis with non-stepped premium. |\n| L9 | Individual trauma – Other | Trauma benefit within policies issued on an individual basis with non-stepped premium |\n| L10 | Individual disability income insurance – Other | Disability income insurance benefit within policies issued on an individual basis with non-stepped premium. |\n| L11 | Group death | Death benefit within policies issued on a group (wholesale) basis. |\n| L11_1 | Group lump sum risk | Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits. |\n| L12 | Group TPD | TPD benefit within policies issued on a group (wholesale) basis. |\n| L13 | Group trauma | Trauma benefit within policies issued on a group (wholesale) basis. |\n| L14 | Group disability income insurance | Disability income insurance benefit within policies issued on a group (wholesale) basis. |\n| L15 | Investment linked | Investment linked policies where policy benefits are associated with the performance of the supporting assets. |\n| L16 | Investment policy with discretionary additions | Investment account business within the meaning of section 14 of the Life Act. |\n| L17 | Other investment policy | Includes all other investment policies not specifically categories in L15 and L16. |\n| L18 | Annuity without longevity risk | Annuities providing periodic payments that are not dependent on the continuance of human life. |\n| L19 | Other | Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand. |\n\nRefer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.\n\nRefer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.\n\nStepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.","sortOrder":17},{"sectionNumber":"5.2. Friendly Societies","sectionType":"part","heading":"5.2. Friendly Societies","content":"# 5.2. Friendly Societies\n\n| Ref. | Product Group | Notes |\n| ---- | ----------------------------------------------- | ------------------------------------------------------------------------------------------------------------- |\n| F1 | Education | |\n| F2 | Investment Account | As defined in section 14 of the Life Insurance Act 1995. |\n| F3 | Annuity and Superannuation | |\n| F4 | Defined Benefit Risk | All products classified as defined benefit, including defined benefit funeral products |\n| F5 | Capital Guaranteed Defined Contribution Funeral | Capital guaranteed funeral products that are classified as Defined Contribution. |\n| F6 | Investment Linked | As defined in section 14 of the Life Insurance Act 1995. |\n| F7 | Unallocated Benefit Fund Reserve | Value of benefit funds which has not been allocated to either the benefit fund members or to management fund. |\n| F8 | Members’ Capital and Retained Profits | Members’ capital and retained profits allocated to members. |\n\nThe classification of participating and non-participating benefits does not apply to friendly societies.","sortOrder":18},{"sectionNumber":"6. Principles for allocating AASB 17 Ins","sectionType":"part","heading":"6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)","content":"# 6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)\n\nLife insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.\n\n- Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.\n- Principle 2: A systematic and rational approach must be applied.\n- Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.\n- Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.\n- Principle 5: A single allocation approach need not necessarily be applied.\n\nAllocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.\n\nFor clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).","sortOrder":19}],"analysis":{"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"Scope remains focused on life companies and friendly societies registered under the Life Act, applied to reporting periods ending on or after 1 July 2023; transitional reporting periods continue under the old LRS 001 where applicable (para 3; para 7). No broader classes of entities are added and the instrument preserves prior transitional arrangements."},"complexity_factors":["Extensive cross‑references to external instruments (AASB standards and multiple prudential standards such as LPS 340, LPS 112, LPS 310, CPS 320) increasing legal and technical compliance demands (paras 3, 3.3–3.4, 4).","Multiple reporting levels required (each statutory/benefit fund, shareholder/management fund, and company level) requiring data segmentation and reconciliations (section 2).","Detailed APRA product group taxonomy (L1–L19; F1–F8) obliges precise mapping of products to categories (section 5).","Allocation principles for assigning AASB 17 numbers to APRA product groups demand accounting/actuarial judgements and documented allocation drivers (section 6).","Permitted use of estimation for interim valuations, subject to Appointed Actuary advice, introduces discretionary judgement and potential variability in reported numbers (para 3.3).","Transition rules preserve the old LRS 001 for certain reporting periods, creating potential dual‑regime reporting and tracking (para 7).","Prescribed lodgement timetables (20 business days for quarterly/half‑yearly; 3 months for annual) impose operational deadline pressures (para 5).","Audit and assurance requirements referencing LPS 310 increase external compliance and testing obligations (section 4).","Units, currency conversion, and presentation rules (whole AUD, ratio precision) add standardisation but require careful formatting and currency controls (section 3.5)."],"plain_english_summary":"This instrument sets out how life insurance companies (including friendly societies) must prepare and lodge APRA returns: what to report, the timing for quarterly/half‑yearly/annual returns, and the accounting and actuarial bases to use (paras 3–5, 3.1–3.4). It requires insurers to follow APRA product‑group classifications, document allocation approaches for AASB 17 items, and meet audit and valuation standards, creating defined compliance, documentation and actuarial judgement tasks for reporting entities (sections 4, 5, 6, Attachment A)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This is a routine update and consolidation of an existing reporting standard (revoking and replacing the old LRS 001). The scope remains consistent with the original intent: providing general instructions for life insurance reporting to APRA. The addition of AASB 17 allocation principles reflects necessary adaptation to new accounting standards rather than scope creep."},"complexity_factors":["Multiple cross-references to external standards: AASB 13, AASB 121, AASB 124, AASB 17, LPS 340, LPS 112, CPS 320, LPS 310, and the Life Insurance Act 1995","Nested definitions: 6 defined terms in the interpretation section (paragraph 8), plus implicit definitions throughout Attachment A","Dual reporting frameworks: Must reconcile APRA's product group classifications with AASB 17 accounting standard requirements","Three-tier reporting structure: statutory/benefit funds, shareholder/management funds, and company-wide levels","19 distinct product groups for life insurers (L1-L19) and 8 for friendly societies (F1-F8), each with specific inclusion/exclusion rules","Conditional logic for transitional arrangements: old standard continues to apply for pre-1 July 2023 reporting periods with specific trigger conditions","5 allocation principles for AASB 17 numbers requiring documented judgment-based approaches","Multiple measurement bases: accounting basis, actuarial valuation basis, and fair value approach depending on purpose","Specific formatting requirements: whole dollars, 2 decimal places for ratios, foreign currency conversion rules"],"plain_english_summary":"This APRA reporting standard tells life insurers and friendly societies what financial and actuarial information to submit, how to allocate amounts across product groups, and how to align reporting with Australian Accounting Standards—including AASB 17. It sets timing expectations and presentation rules so APRA receives consistent, comparable data.\n\nIt applies to reporting periods ending on or after 1 July 2023."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-111-of-2023","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-111-of-2023/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-111-of-2023/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-111-of-2023/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-111-of-2023/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-111-of-2023/documents"}}