{"id":"F2023L00600","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 117 of 2023","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-117-of-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104264,"registerId":"commonwealth-F2023L00600-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard LRS 115.0","sectionType":"part","heading":"Reporting Standard LRS 115.0","content":"![Commonwealth Coat of Arms of Australia](image.002.png)\n\n# Reporting Standard LRS 115.0\n\n## Insurance Risk Charge\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA in relation to calculating a life insurance company’s Insurance Risk Charge.\n\nIt includes associated specific instructions and must be read in conjunction with Reporting Standard LRS 001 Reporting Requirements (LRS 001), including the general instruction guide, and Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge (LPS 115).\n\n### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\n### Purpose\n\n2. The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital adequacy standards.\n\n### Application 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\n### Information required\n\n4. A life company must provide APRA with the information required by this Reporting Standard for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Act. It does not constitute a reporting document for the purposes of section 124.\n\n### Method of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n (a) in electronic format using an electronic method available on APRA’s website; or\n (b) by a method notified by APRA prior to submission.\n\n### Reporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that information provided under this Reporting Standard will be submitted five times for a full financial year.\n\nNote 2: The annual audited information provided under this Reporting Standard must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters.\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) in the case of quarterly information, within 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of annual information, within three months after the end of the reporting period to which the information relates; or\n\n(c) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\n10. APRA may, in writing, grant a life company an extension of a due date, in which case the new due date will be the date on the notice of extension.\n\nNote: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, a life company is nonetheless required to submit the information required no later than the due date.\n\n### Quality control\n\n11. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard LPS 310 Audit and Related Matters.\n\n12. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n13. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).\n\n### Authorisation\n\n14. When an officer or agent of a life company provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n 15. An officer or agent of a life company who submits information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.\n\n### Variations\n\n16. APRA may, by written notice to the life company, vary the reporting requirements of this Reporting Standard in relation to that life company.\n\n### Transition\n\n17. A life company must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this Reporting Standard; and\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n (a) which ended before 1 July 2023; and\n (b) in relation to which the life company was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: For the avoidance of doubt, if a life company was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the life company is still required to provide any overdue reporting documents in accordance with the old reporting standard.\n\n### Interpretation\n\n18. In this Reporting Standard:\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) the following definitions are applicable:\n\nAuditor means an auditor appointed under paragraph 83 of the Life Act.\n\ncapital adequacy standards means the prudential standards which relate to capital adequacy as defined in LPS 001.\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called.\n\nfinancial year has the meaning in the Corporations Act 2001.\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001.\n\nLife Act means the Life Insurance Act 1995.\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity.\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.\n\n19. 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":"Insurance Risk Charge","sectionType":"part","heading":"Insurance Risk Charge","content":"![Commonwealth Coat of Arms of Australia](image.002.png)\n\n# Reporting Standard LRS 115.0\n\n## Insurance Risk Charge\n\n### Objective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA in relation to calculating a life insurance company’s Insurance Risk Charge.\n\nIt includes associated specific instructions and must be read in conjunction with Reporting Standard LRS 001 Reporting Requirements (LRS 001), including the general instruction guide, and Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge (LPS 115).\n\n### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\n### Purpose\n\n2. The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital adequacy standards.\n\n### Application 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\n### Information required\n\n4. A life company must provide APRA with the information required by this Reporting Standard for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Act. It does not constitute a reporting document for the purposes of section 124.\n\n### Method of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n (a) in electronic format using an electronic method available on APRA’s website; or\n (b) by a method notified by APRA prior to submission.\n\n### Reporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that information provided under this Reporting Standard will be submitted five times for a full financial year.\n\nNote 2: The annual audited information provided under this Reporting Standard must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters.\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) in the case of quarterly information, within 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of annual information, within three months after the end of the reporting period to which the information relates; or\n\n(c) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\n10. APRA may, in writing, grant a life company an extension of a due date, in which case the new due date will be the date on the notice of extension.\n\nNote: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, a life company is nonetheless required to submit the information required no later than the due date.\n\n### Quality control\n\n11. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard LPS 310 Audit and Related Matters.\n\n12. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n13. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).\n\n### Authorisation\n\n14. When an officer or agent of a life company provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n 15. An officer or agent of a life company who submits information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.\n\n### Variations\n\n16. APRA may, by written notice to the life company, vary the reporting requirements of this Reporting Standard in relation to that life company.\n\n### Transition\n\n17. A life company must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this Reporting Standard; and\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n (a) which ended before 1 July 2023; and\n (b) in relation to which the life company was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: For the avoidance of doubt, if a life company was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the life company is still required to provide any overdue reporting documents in accordance with the old reporting standard.\n\n### Interpretation\n\n18. In this Reporting Standard:\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) the following definitions are applicable:\n\nAuditor means an auditor appointed under paragraph 83 of the Life Act.\n\ncapital adequacy standards means the prudential standards which relate to capital adequacy as defined in LPS 001.\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called.\n\nfinancial year has the meaning in the Corporations Act 2001.\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001.\n\nLife Act means the Life Insurance Act 1995.\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity.\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.\n\n19. 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 requirements for the provision of information to APRA in relation to calculating a life insurance company’s Insurance Risk Charge.\n\nIt includes associated specific instructions and must be read in conjunction with Reporting Standard LRS 001 Reporting Requirements (LRS 001), including the general instruction guide, and Prudential Standard LPS 115 Capital Adequacy: Insurance Risk Charge (LPS 115).","sortOrder":2},{"sectionNumber":"Authority","sectionType":"division","heading":"Authority","content":"### Authority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.","sortOrder":3},{"sectionNumber":"Purpose","sectionType":"division","heading":"Purpose","content":"### Purpose\n\n2. The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital adequacy standards.","sortOrder":4},{"sectionNumber":"Application and commencement","sectionType":"division","heading":"Application and commencement","content":"### Application 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.","sortOrder":5},{"sectionNumber":"Information required","sectionType":"division","heading":"Information required","content":"### Information required\n\n4. A life company must provide APRA with the information required by this Reporting Standard for each reporting period.\n\n5. The information reported to APRA under this Reporting Standard is not required to be given to policy owners pursuant to section 124 of the Life Act. It does not constitute a reporting document for the purposes of section 124.","sortOrder":6},{"sectionNumber":"Method of submission","sectionType":"division","heading":"Method of submission","content":"### Method of submission\n\n6. The information required by this Reporting Standard must be given to APRA:\n\n (a) in electronic format using an electronic method available on APRA’s website; or\n (b) by a method notified by APRA prior to submission.","sortOrder":7},{"sectionNumber":"Reporting periods and due dates","sectionType":"division","heading":"Reporting periods and due dates","content":"### Reporting periods and due dates\n\n7. Subject to paragraph 8, a life company must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the life company on an unaudited basis; and\n\n(b) in respect of each financial year of the life company on an audited basis.\n\nNote 1: This means that information provided under this Reporting Standard will be submitted five times for a full financial year.\n\nNote 2: The annual audited information provided under this Reporting Standard must be submitted in conjunction with the annual auditor’s report, as required under Prudential Standard LPS 310 Audit and Related Matters.\n\n8. If, having regard to the particular circumstances of a life company, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 7(a) or 7(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular life company.\n\n9. The information required by this Reporting Standard in respect of a life company must be provided to APRA:\n\n(a) in the case of quarterly information, within 20 business days after the end of the reporting period to which the information relates;\n\n(b) in the case of annual information, within three months after the end of the reporting period to which the information relates; or\n\n(c) in the case of information provided in accordance with paragraph 8, within the time specified by notice in writing.\n\n10. APRA may, in writing, grant a life company an extension of a due date, in which case the new due date will be the date on the notice of extension.\n\nNote: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, a life company is nonetheless required to submit the information required no later than the due date.","sortOrder":8},{"sectionNumber":"Quality control","sectionType":"division","heading":"Quality control","content":"### Quality control\n\n11. The information provided by a life company under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Auditor of the life company. This will require the Auditor to review and test the life company’s systems, processes and controls supporting the reporting of the information to enable the life company to provide reliable financial information to APRA. This review and testing must be done on:\n\n(a) an annual basis or more frequently if necessary to enable the Auditor to form an opinion on the reliability and accuracy of data; and\n\n(b) at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard LPS 310 Audit and Related Matters.\n\n12. All information provided by a life company under this Reporting Standard must be subject to systems, processes and controls developed by the life company for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the life company to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\n13. Actuarial valuations and calculations included in or used in the preparation of the information provided to APRA must be in accordance with the prudential standards in force for the reporting period. However, life companies may use reasonable estimates when preparing information that will not be audited (i.e. for the first four submissions of information for a full financial year).","sortOrder":9},{"sectionNumber":"Authorisation","sectionType":"division","heading":"Authorisation","content":"### Authorisation\n\n14. When an officer or agent of a life company provides the information required by this Reporting Standard using an electronic format, the officer or agent must digitally sign the relevant information using a digital certificate acceptable to APRA.\n\n 15. An officer or agent of a life company who submits information under this Reporting Standard must be authorised by either:\n\n(a) the Principal Executive Officer of the life company; or\n\n(b) the Chief Financial Officer of the life company.","sortOrder":10},{"sectionNumber":"Variations","sectionType":"division","heading":"Variations","content":"### Variations\n\n16. APRA may, by written notice to the life company, vary the reporting requirements of this Reporting Standard in relation to that life company.","sortOrder":11},{"sectionNumber":"Transition","sectionType":"division","heading":"Transition","content":"### Transition\n\n17. A life company must report under the old reporting standard in respect of a transitional reporting period. For these purposes:\n\nold reporting standard means the reporting standard revoked in the determination making this Reporting Standard; and\n\ntransitional reporting period means a reporting period under the old reporting standard:\n\n (a) which ended before 1 July 2023; and\n (b) in relation to which the life company was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.\n\nNote: For the avoidance of doubt, if a life company was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the life company is still required to provide any overdue reporting documents in accordance with the old reporting standard.","sortOrder":12},{"sectionNumber":"Interpretation","sectionType":"division","heading":"Interpretation","content":"### Interpretation\n\n18. In this Reporting Standard:\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard LPS 001 Definitions (LPS 001); and\n\n(b) the following definitions are applicable:\n\nAuditor means an auditor appointed under paragraph 83 of the Life Act.\n\ncapital adequacy standards means the prudential standards which relate to capital adequacy as defined in LPS 001.\n\nChief Financial Officer means the chief financial officer of the life company, by whatever name called.\n\nfinancial year has the meaning in the Corporations Act 2001.\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of LRS 001.\n\nLife Act means the Life Insurance Act 1995.\n\nPrincipal Executive Officer means the principal executive officer of the life company, by whatever name called, and whether or not he or she is a member of the governing board of the entity.\n\nreporting period means a reporting period under subparagraph 7(a) or 7(b) or, if applicable, paragraph 8.\n\n19. 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":13},{"sectionNumber":"General instructions","sectionType":"part","heading":"General instructions","content":"# Reporting Standard LRS 115.0\n\n# Insurance Risk Charge\n\n## General instructions\n\n### Reporting tables\n\nTables described in this reporting form list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.\n\nAny specific combination of values in the table must not appear on more than one row in that table when reported.\n\n### Definitions\n\nTerms highlighted in bold italics indicate that the definition is provided in these instructions.\n\n### A\n\n| Additional deficiency from prescribed servicing expense stress(Insurance Risk Charge component) | This is the additional deficiency arising (if any) in management fees relative to servicing expenses from the application of the servicing expense stress over and above the expected deficiency as determined in expected deficiency (before prescribed multiplier). |\n| ----------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Adjusted policy liabilities (gross of reinsurance)(Insurance Risk Charge component) | This is the total adjusted policy liabilities determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112), gross of reinsurance. |\n| Adjusted policy liabilities (net of reinsurance)(Insurance Risk Charge component) | This is the total adjusted policy liabilities determined in accordance with LPS 112, net of reinsurance. |\n\n### E\n\n| Expected deficiency (before prescribed multiplier)(Insurance Risk Charge component) | This is the expected deficiency in management fees and the servicing expenses expected to arise over the period of 12 months subsequent to the reporting date. |\n| ----------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| Expected deficiency (post prescribed multiplier)(Insurance Risk Charge component) | This is the expected deficiency in management fees received relative to the servicing expenses incurred over the next 12-month period, post the application of the prescribed multiplier. |\n| Expected management fees(Insurance Risk Charge component) | This is the total amount of management fees expected to be received by the management fund from benefit funds.The reported expected management fees must allow for the effect of any assumed reduction in management fees assumed under asset and/or insurance stress and should cover the period of 12 months subsequent to the reporting date. |\n| Expected servicing expenses(Insurance Risk Charge component) | This is the amount of servicing expenses incurred by the management fund in relation to the life insurance activities of the friendly society.The reported amount should cover the period of 12 months subsequent to the reporting date. |\n\n### I\n\n| Insurance benefit | This is the type of insurance benefit that a life policy can include. Life companies must report data items by insurance benefit where required. Insurance benefit can either be:non-participating benefits;participating benefits; orfriendly society benefits.Non-participating benefits can either be:non-participating benefits without entitlement to discretionary additions; ornon-participating benefits with entitlement to discretionary additions. |\n| -------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Insurance Risk Charge component | This is a component which forms part of the Insurance Risk Charge calculation. |\n| Insurance Risk Charge - tax benefits(Insurance Risk Charge component) | For a statutory fund or benefit fund of a life company, this is the total tax benefits arising from the increase in adjusted policy liabilities (net of reinsurance) to stressed policy liabilities (net of reinsurance) due to the application of insurance risk stresses. |\n| Insurance Risk Charge - tax benefits (FS)(Insurance Risk Charge component) | For the management fund of a friendly society, this is the tax benefits arising from the inclusion of the servicing expense reserve in liabilities. Admissibility of tax benefits will be assessed in calculating the prescribed capital amount. |\n\n### L\n\n| Life company fund | This means the type of life company fund. Possible types are:statutory fund; andbenefit fund. |\n| ----------------- | --------------------------------------------------------------------------------------------- |\n\n### R\n\n| Reduction in management fees assumed under asset and/or insurance stress(Insurance Risk Charge component) | This is the amount of reduction in management fees to be paid by the benefit funds to the management fund that has been assumed in response to the asset risk and insurance risk stress scenarios. |\n| --------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n### S\n\n| Stressed policy liabilities (gross of reinsurance)(Insurance Risk Charge component) | This is the total value of stressed policy liabilities across all product groups within the fund that is determined in accordance with LPS 115, gross of reinsurance. |\n| ----------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Stressed policy liabilities (net of reinsurance)(Insurance Risk Charge component) | This is the total value of stressed policy liabilities across all product groups within the fund that is determined in accordance with LPS 115, net of reinsurance. |\n\n### T\n\n| Total servicing expense reserve(Insurance Risk Charge component) | This is the servicing expense reserve component of the Insurance Risk Charge. |\n| ---------------------------------------------------------------- | ----------------------------------------------------------------------------- |","sortOrder":16},{"sectionNumber":"Reporting tables","sectionType":"division","heading":"Reporting tables","content":"### Reporting tables\n\nTables described in this reporting form list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.\n\nAny specific combination of values in the table must not appear on more than one row in that table when reported.","sortOrder":17},{"sectionNumber":"Definitions","sectionType":"division","heading":"Definitions","content":"### Definitions\n\nTerms highlighted in bold italics indicate that the definition is provided in these instructions.","sortOrder":18},{"sectionNumber":"A","sectionType":"division","heading":"A","content":"### A\n\n| Additional deficiency from prescribed servicing expense stress(Insurance Risk Charge component) | This is the additional deficiency arising (if any) in management fees relative to servicing expenses from the application of the servicing expense stress over and above the expected deficiency as determined in expected deficiency (before prescribed multiplier). |\n| ----------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Adjusted policy liabilities (gross of reinsurance)(Insurance Risk Charge component) | This is the total adjusted policy liabilities determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112), gross of reinsurance. |\n| Adjusted policy liabilities (net of reinsurance)(Insurance Risk Charge component) | This is the total adjusted policy liabilities determined in accordance with LPS 112, net of reinsurance. |","sortOrder":19},{"sectionNumber":"E","sectionType":"division","heading":"E","content":"### E\n\n| Expected deficiency (before prescribed multiplier)(Insurance Risk Charge component) | This is the expected deficiency in management fees and the servicing expenses expected to arise over the period of 12 months subsequent to the reporting date. |\n| ----------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| Expected deficiency (post prescribed multiplier)(Insurance Risk Charge component) | This is the expected deficiency in management fees received relative to the servicing expenses incurred over the next 12-month period, post the application of the prescribed multiplier. |\n| Expected management fees(Insurance Risk Charge component) | This is the total amount of management fees expected to be received by the management fund from benefit funds.The reported expected management fees must allow for the effect of any assumed reduction in management fees assumed under asset and/or insurance stress and should cover the period of 12 months subsequent to the reporting date. |\n| Expected servicing expenses(Insurance Risk Charge component) | This is the amount of servicing expenses incurred by the management fund in relation to the life insurance activities of the friendly society.The reported amount should cover the period of 12 months subsequent to the reporting date. |","sortOrder":20},{"sectionNumber":"I","sectionType":"division","heading":"I","content":"### I\n\n| Insurance benefit | This is the type of insurance benefit that a life policy can include. Life companies must report data items by insurance benefit where required. Insurance benefit can either be:non-participating benefits;participating benefits; orfriendly society benefits.Non-participating benefits can either be:non-participating benefits without entitlement to discretionary additions; ornon-participating benefits with entitlement to discretionary additions. |\n| -------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Insurance Risk Charge component | This is a component which forms part of the Insurance Risk Charge calculation. |\n| Insurance Risk Charge - tax benefits(Insurance Risk Charge component) | For a statutory fund or benefit fund of a life company, this is the total tax benefits arising from the increase in adjusted policy liabilities (net of reinsurance) to stressed policy liabilities (net of reinsurance) due to the application of insurance risk stresses. |\n| Insurance Risk Charge - tax benefits (FS)(Insurance Risk Charge component) | For the management fund of a friendly society, this is the tax benefits arising from the inclusion of the servicing expense reserve in liabilities. Admissibility of tax benefits will be assessed in calculating the prescribed capital amount. |","sortOrder":21},{"sectionNumber":"L","sectionType":"division","heading":"L","content":"### L\n\n| Life company fund | This means the type of life company fund. Possible types are:statutory fund; andbenefit fund. |\n| ----------------- | --------------------------------------------------------------------------------------------- |","sortOrder":22},{"sectionNumber":"R","sectionType":"division","heading":"R","content":"### R\n\n| Reduction in management fees assumed under asset and/or insurance stress(Insurance Risk Charge component) | This is the amount of reduction in management fees to be paid by the benefit funds to the management fund that has been assumed in response to the asset risk and insurance risk stress scenarios. |\n| --------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":23},{"sectionNumber":"S","sectionType":"division","heading":"S","content":"### S\n\n| Stressed policy liabilities (gross of reinsurance)(Insurance Risk Charge component) | This is the total value of stressed policy liabilities across all product groups within the fund that is determined in accordance with LPS 115, gross of reinsurance. |\n| ----------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Stressed policy liabilities (net of reinsurance)(Insurance Risk Charge component) | This is the total value of stressed policy liabilities across all product groups within the fund that is determined in accordance with LPS 115, net of reinsurance. |","sortOrder":24},{"sectionNumber":"T","sectionType":"division","heading":"T","content":"### T\n\n| Total servicing expense reserve(Insurance Risk Charge component) | This is the servicing expense reserve component of the Insurance Risk Charge. |\n| ---------------------------------------------------------------- | ----------------------------------------------------------------------------- |","sortOrder":25},{"sectionNumber":"Specific instructions","sectionType":"part","heading":"Specific instructions","content":"## Specific instructions\n\n### Table 1: Insurance Risk Charge\n\n### Reporting basis\n\nThis table applies to life companies including friendly societies. Data must be submitted at the level of each individual statutory fund for life insurers and each benefit fund for friendly societies. Report all information as at the reporting date.\n\n### Units of measurement\n\nThe values in this table must be competed in whole Australian dollars (no decimal place).\n\n| | Name | Valid values | Description |\n| --- | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ |\n| 1 | Life Company Fund Type | Statutory fundBenefit fund | Report life company fund. |\n| 2 | Life Company Fund Name | Free text | Report the name of life company fund. |\n| 3 | Insurance Risk Charge Component Type | Adjusted policy liabilities (gross of reinsurance)Adjusted policy liabilities (net of reinsurance)Stressed policy liabilities (gross of reinsurance)Stressed policy liabilities (net of reinsurance)Insurance Risk Charge - tax benefits | Report Insurance Risk Charge component type. |\n| 4 | Insurance Benefit | Non-participating benefits without entitlement to discretionary additionsNon-participating benefits with entitlement to discretionary additionsParticipating benefitsFriendly society benefits | Report insurance benefit. |\n| 5 | Insurance Risk Charge Component Amount | Whole dollars | Report Insurance Risk Charge component amount.Report Insurance Risk Charge - tax benefits as a positive value where tax benefits are recognised. |\n\n### \nTable 2: Insurance Risk Charge – Friendly Societies\n\n### Reporting basis\n\nThis table applies to friendly societies only. Data must be submitted at the level of the management fund.\n\nReport all information as at the reporting date.\n\n### Units of measurement\n\nThe values in this table must be competed in whole Australian dollars (no decimal place).\n\n| | Name | Valid values | Description |\n| --- | -------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| 1 | Life Company Fund Name | Free text | Report the name of life company fund. |\n| 2 | Insurance Risk Charge Component Type | Expected management feesReduction in management fees assumed under asset and/or insurance stressExpected servicing expensesExpected deficiency (before prescribed multiplier)Additional deficiency from prescribed servicing expense stressExpected deficiency (post prescribed multiplier)Total servicing expense reserveInsurance Risk Charge - tax benefits (FS) | Report Insurance Risk Charge component type. |\n| 3 | Insurance Risk Charge Component Amount | Whole dollars | Report Insurance Risk Charge component amount.Report Insurance Risk Charge - tax benefits (FS) as a positive value where tax benefits are recognised.Report reduction in management fees assumed under asset and/or insurance stress as a positive figure where a reduction in management fees has been assumed. |","sortOrder":26},{"sectionNumber":"Table 1: Insurance Risk Charge","sectionType":"division","heading":"Table 1: Insurance Risk Charge","content":"## Specific instructions\n\n### Table 1: Insurance Risk Charge\n\n### Reporting basis\n\nThis table applies to life companies including friendly societies. Data must be submitted at the level of each individual statutory fund for life insurers and each benefit fund for friendly societies. Report all information as at the reporting date.\n\n### Units of measurement\n\nThe values in this table must be competed in whole Australian dollars (no decimal place).\n\n| | Name | Valid values | Description |\n| --- | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ |\n| 1 | Life Company Fund Type | Statutory fundBenefit fund | Report life company fund. |\n| 2 | Life Company Fund Name | Free text | Report the name of life company fund. |\n| 3 | Insurance Risk Charge Component Type | Adjusted policy liabilities (gross of reinsurance)Adjusted policy liabilities (net of reinsurance)Stressed policy liabilities (gross of reinsurance)Stressed policy liabilities (net of reinsurance)Insurance Risk Charge - tax benefits | Report Insurance Risk Charge component type. |\n| 4 | Insurance Benefit | Non-participating benefits without entitlement to discretionary additionsNon-participating benefits with entitlement to discretionary additionsParticipating benefitsFriendly society benefits | Report insurance benefit. |\n| 5 | Insurance Risk Charge Component Amount | Whole dollars | Report Insurance Risk Charge component amount.Report Insurance Risk Charge - tax benefits as a positive value where tax benefits are recognised. |\n\n### \nTable 2: Insurance Risk Charge – Friendly Societies\n\n### Reporting basis\n\nThis table applies to friendly societies only. Data must be submitted at the level of the management fund.\n\nReport all information as at the reporting date.\n\n### Units of measurement\n\nThe values in this table must be competed in whole Australian dollars (no decimal place).\n\n| | Name | Valid values | Description |\n| --- | -------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| 1 | Life Company Fund Name | Free text | Report the name of life company fund. |\n| 2 | Insurance Risk Charge Component Type | Expected management feesReduction in management fees assumed under asset and/or insurance stressExpected servicing expensesExpected deficiency (before prescribed multiplier)Additional deficiency from prescribed servicing expense stressExpected deficiency (post prescribed multiplier)Total servicing expense reserveInsurance Risk Charge - tax benefits (FS) | Report Insurance Risk Charge component type. |\n| 3 | Insurance Risk Charge Component Amount | Whole dollars | Report Insurance Risk Charge component amount.Report Insurance Risk Charge - tax benefits (FS) as a positive value where tax benefits are recognised.Report reduction in management fees assumed under asset and/or insurance stress as a positive figure where a reduction in management fees has been assumed. |","sortOrder":27},{"sectionNumber":"Reporting basis","sectionType":"division","heading":"Reporting basis","content":"### Reporting basis\n\nThis table applies to life companies including friendly societies. Data must be submitted at the level of each individual statutory fund for life insurers and each benefit fund for friendly societies. Report all information as at the reporting date.","sortOrder":28},{"sectionNumber":"Units of measurement","sectionType":"division","heading":"Units of measurement","content":"### Units of measurement\n\nThe values in this table must be competed in whole Australian dollars (no decimal place).\n\n| | Name | Valid values | Description |\n| --- | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ |\n| 1 | Life Company Fund Type | Statutory fundBenefit fund | Report life company fund. |\n| 2 | Life Company Fund Name | Free text | Report the name of life company fund. |\n| 3 | Insurance Risk Charge Component Type | Adjusted policy liabilities (gross of reinsurance)Adjusted policy liabilities (net of reinsurance)Stressed policy liabilities (gross of reinsurance)Stressed policy liabilities (net of reinsurance)Insurance Risk Charge - tax benefits | Report Insurance Risk Charge component type. |\n| 4 | Insurance Benefit | Non-participating benefits without entitlement to discretionary additionsNon-participating benefits with entitlement to discretionary additionsParticipating benefitsFriendly society benefits | Report insurance benefit. |\n| 5 | Insurance Risk Charge Component Amount | Whole dollars | Report Insurance Risk Charge component amount.Report Insurance Risk Charge - tax benefits as a positive value where tax benefits are recognised. |","sortOrder":29},{"sectionNumber":"Table 2: Insurance Risk Charge — Friendl","sectionType":"division","heading":"Table 2: Insurance Risk Charge — Friendly Societies","content":"## Specific instructions\n\n### Table 1: Insurance Risk Charge\n\n### Reporting basis\n\nThis table applies to life companies including friendly societies. Data must be submitted at the level of each individual statutory fund for life insurers and each benefit fund for friendly societies. Report all information as at the reporting date.\n\n### Units of measurement\n\nThe values in this table must be competed in whole Australian dollars (no decimal place).\n\n| | Name | Valid values | Description |\n| --- | -------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------ |\n| 1 | Life Company Fund Type | Statutory fundBenefit fund | Report life company fund. |\n| 2 | Life Company Fund Name | Free text | Report the name of life company fund. |\n| 3 | Insurance Risk Charge Component Type | Adjusted policy liabilities (gross of reinsurance)Adjusted policy liabilities (net of reinsurance)Stressed policy liabilities (gross of reinsurance)Stressed policy liabilities (net of reinsurance)Insurance Risk Charge - tax benefits | Report Insurance Risk Charge component type. |\n| 4 | Insurance Benefit | Non-participating benefits without entitlement to discretionary additionsNon-participating benefits with entitlement to discretionary additionsParticipating benefitsFriendly society benefits | Report insurance benefit. |\n| 5 | Insurance Risk Charge Component Amount | Whole dollars | Report Insurance Risk Charge component amount.Report Insurance Risk Charge - tax benefits as a positive value where tax benefits are recognised. |\n\n### \nTable 2: Insurance Risk Charge – Friendly Societies\n\n### Reporting basis\n\nThis table applies to friendly societies only. Data must be submitted at the level of the management fund.\n\nReport all information as at the reporting date.\n\n### Units of measurement\n\nThe values in this table must be competed in whole Australian dollars (no decimal place).\n\n| | Name | Valid values | Description |\n| --- | -------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| 1 | Life Company Fund Name | Free text | Report the name of life company fund. |\n| 2 | Insurance Risk Charge Component Type | Expected management feesReduction in management fees assumed under asset and/or insurance stressExpected servicing expensesExpected deficiency (before prescribed multiplier)Additional deficiency from prescribed servicing expense stressExpected deficiency (post prescribed multiplier)Total servicing expense reserveInsurance Risk Charge - tax benefits (FS) | Report Insurance Risk Charge component type. |\n| 3 | Insurance Risk Charge Component Amount | Whole dollars | Report Insurance Risk Charge component amount.Report Insurance Risk Charge - tax benefits (FS) as a positive value where tax benefits are recognised.Report reduction in management fees assumed under asset and/or insurance stress as a positive figure where a reduction in management fees has been assumed. |","sortOrder":30}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"This Reporting Standard appears to replace and update an earlier reporting standard for the same subject (Insurance Risk Charge) without materially expanding the statutory purpose. Its object remains the provision of data to APRA for prudential supervision and capital adequacy assessment. The instrument introduces clarified reporting tables, auditor assurance requirements and electronic submission procedures, but does not, on its face, broaden the types of entities covered or change the fundamental aim of collecting data to support LPS 115 compliance."},"complexity_factors":["Multiple cross‑references to other prudential instruments (LPS 001, LPS 112, LPS 115, LPS 310) which import additional defined terms and measurement rules","Two distinct reporting tables with different unit/aggregation levels (per statutory/benefit fund; management fund for friendly societies)","Reporting frequency rules with a standard rule (quarterly unaudited + annual audited) plus APRA discretion to vary frequency (para 7–8)","Auditor assurance requirement (annual review + at least limited assurance engagement) and board/senior management governance obligations (paras 11–13)","Authorisation and electronic submission mechanics (digital certificate, authorised officer by CEO or CFO) (paras 14–15)","Transitional provisions requiring certain reports under the old standard and handling overdue obligations (para 17)","Reporting detail includes both liability measures (adjusted/stressed liabilities gross/net of reinsurance) and servicing/fee items (friendly societies), requiring actuarial and operational data flows","Constraints and formatting rules (whole Australian dollars; unique row combinations in tables) impose data‑processing requirements","Regulatory discretion points (APRA can vary requirements and assess admissibility of tax benefits) add conditional outcomes","Repetition and duplication within the instrument increases navigational effort for users"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- Establishes a reporting standard (LRS 115.0) requiring life insurance companies and friendly societies to submit specified data to APRA for the calculation of the Insurance Risk Charge (the prudential capital charge for insurance risk). (see Objective & Purpose)\n\n- Applies to all life companies registered under the Life Insurance Act 1995 for reporting periods ending on or after 1 July 2023. (para 3)\n\n- Requires submissions in electronic form (or by another APRA‑notified method), with a digital signature acceptable to APRA when submitted electronically. (para 6; para 14)\n\n- Sets reporting frequency and timing: unaudited quarterly returns and an audited annual return (five submissions in a full financial year). Quarterly data are due within 20 business days after the period end; annual audited data are due within three months. APRA may vary frequency or due dates for particular entities. (paras 7–10, 8)\n\n- Requires auditor review and testing of the systems, processes and controls that produce the reported information (at least an annual review and at least a limited assurance engagement). Boards and senior management must maintain policies/procedures for data authorisation. Actuarial work must comply with prudential standards; reasonable estimates are allowed for unaudited (quarterly) submissions. (paras 11–13)\n\n- Prescribes authorisation for submissions (must be submitted by an officer/agent authorised by the Principal Executive Officer or Chief Financial Officer). (para 15)\n\n- Gives APRA power to vary reporting requirements for an individual life company by written notice, and to grant extensions for due dates. (paras 16, 10)\n\n- Contains specific reporting tables and definitions: Table 1 (per statutory fund or benefit fund) collecting items such as adjusted and stressed policy liabilities (gross and net of reinsurance) and tax benefits, broken down by insurance benefit type; Table 2 (for friendly societies’ management funds) collecting management fees, servicing expenses and servicing‑expense reserve items, plus stress adjustments. Values must be reported in whole Australian dollars. (Specific instructions, Reporting tables)\n\n\nWho this affects and who pays\n\n- Primary payers/filers: life insurance companies and friendly societies registered under the Life Insurance Act 1995. They must collect, maintain and submit the data and bear the costs of systems, audit work and staff time. (paras 3–5, 11–13)\n\n- Decision authority: APRA sets the reporting template, accepts submissions, can vary frequency/requirements and grant extensions. Company boards and senior management are responsible for internal controls and authorisation. Auditors must perform specified review procedures. (paras 6, 8, 10, 11, 12, 15, 16)\n\n\nWhy it matters (APRA's stated purpose and practical effects)\n\n- APRA states the data will be used for prudential supervision and assessment of compliance with capital adequacy standards (i.e. to calculate and monitor Insurance Risk Charge and ensure firms hold appropriate capital). (para 2)\n\n- Practical implications: firms must run or upgrade data collection and actuarial processes to produce the specified liability and servicing‑expense metrics; maintain documentation and internal controls; arrange auditor reviews and digital authentication; and submit five sets of data per year (unless APRA varies frequency). These are recurring operational costs. (paras 7, 11–15)\n\n\nTrade‑offs, incentives and implementation risks (tested against costs and market effects)\n\n- Compliance cost and capacity: The standard increases recurring reporting and audit work (quarterly unaudited submissions plus an audited annual submission). Smaller life companies and friendly societies will face relatively higher per‑entity fixed costs to implement systems and auditor work; larger firms can amortise fixed costs. (paras 7, 11–13)\n\n- Data and governance incentives: The standard shifts incentives toward stronger data governance, more frequent internal validation and closer linkage between actuarial processes and regulatory reporting. Boards and senior management bear governance responsibility, which can raise internal compliance costs. (paras 11–13)\n\n- Competitive effects: Differential capacity to absorb reporting costs may disadvantage smaller or niche life companies relative to larger insurers, unless APRA uses its discretion to reduce reporting frequency for particular firms. (para 8, 16)\n\n- Discretion and regulatory burden: APRA retains discretion to vary reporting requirements and frequency for individual firms (which can mitigate disproportionate burdens) and to assess admissibility of tax benefits and other items. That discretion concentrates decision power with APRA and creates variability in compliance obligations across firms. (paras 8, 16; definitions re tax benefits)\n\n- Implementation risk: Firms must adopt APRA’s electronic submission method and digital certificate requirements; transition rules require some entities to report under the previous standard for certain periods, which adds administrative complexity during changeover. (paras 6, 17)\n\n- Opportunity cost: Time and money spent on data capture, audit and compliance are resources not available for product development, pricing innovation or competing on service. (paras 11–13)\n\n- Direct effect on prices/capital: The standard itself is a reporting instrument (it does not set capital outcomes directly). However, the underlying prudential standard (LPS 115) determines stressed liabilities and the Insurance Risk Charge; more granular/transparent reporting can lead to changes in APRA assessments, which could influence required capital and, indirectly, pricing or product design. (Objective; cross‑references to LPS 115)\n\n\nKey implementation mechanics to note (where firms must act)\n\n- Prepare electronic submissions in APRA’s format and obtain a digital certificate acceptable to APRA. (paras 6, 14)\n- Ensure auditors perform annual reviews and at least a limited assurance engagement on relevant systems/processes. (para 11)\n- Maintain board‑level policies and procedures for internal review and authorisation of reported data. (para 12)\n- For friendly societies, prepare additional management‑fund level items (management fees, servicing‑expense reserve and stress adjustments). (Table 2 specific instructions)\n- Keep actuarial valuations in line with current prudential standards; reasonable estimates may be used for unaudited quarterly returns. (para 13)\n\n\nPrimary citations (mechanical): paras 1–19; Specific instructions and Reporting tables (Tables 1–2); cross‑references to Prudential Standards LPS 001, LPS 112, LPS 115 and LPS 310 as authoritative sources for definitions, measurement and audit requirements.\n\n\nSummary judgement about scope and purpose (mechanical conclusion)\n\n- Mechanically, this instrument replaces an earlier reporting standard and sets mandatory, recurring reporting and quality‑control requirements for life insurers and friendly societies so APRA can calculate and supervise Insurance Risk Charge and capital adequacy. It centralises APRA discretion over frequency and variation for particular firms and places governance and audit obligations on firms and their auditors."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This is a technical reporting standard that remains tightly focused on its original purpose: collecting Insurance Risk Charge data from life insurers for prudential supervision. While it incorporates by reference several other prudential standards (as is typical for APRA reporting standards), it has not expanded beyond its core function of data collection for capital adequacy assessment."},"complexity_factors":["Extensive cross-referencing to other standards: must be read with LRS 001 (general reporting requirements), LPS 115 (capital adequacy standard), LPS 112 (measurement of capital), LPS 001 (definitions), and LPS 310 (audit matters)","Nested conditional logic: paragraph 8 allows APRA to modify reporting periods based on 'particular circumstances', creating variable obligations","Dual reporting regimes: different tables and requirements for standard life insurers vs friendly societies (Table 1 vs Table 2)","Multiple defined terms (9 explicit definitions in section 18, plus incorporation by reference of LPS 001 definitions)","Technical financial terminology requiring actuarial expertise: 'stressed policy liabilities', 'prescribed multiplier', 'servicing expense reserve', 'adjusted policy liabilities'","Transition provisions with temporal conditions: paragraph 17 creates overlapping obligations with 'old reporting standard' for transitional periods","Quality control requirements involving external audit standards (limited assurance engagements) and internal governance (Board responsibility)","Specific data validation rules: 'whole Australian dollars (no decimal place)', uniqueness constraints on table rows, positive/negative value conventions for specific fields"],"plain_english_summary":"This APRA reporting standard requires Australian life insurers and friendly societies to submit regular electronic data on their Insurance Risk Charge—showing liabilities under base and stressed scenarios so APRA can assess required capital. \n\nIt affects registered life insurers (including friendly societies), mandates auditor review and executive sign-off, and ensures APRA can monitor solvency and protect policyholders by spotting industry risks early."},"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"}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-117-of-2023","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-117-of-2023/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-117-of-2023/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-117-of-2023/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-117-of-2023/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-117-of-2023/documents"}}