{"id":"F2023L00601","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 119 of 2023","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-119-of-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104267,"registerId":"commonwealth-F2023L00601-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Reporting Standard LRS 118.0","sectionType":"part","heading":"Reporting Standard LRS 118.0","content":"![Commonwealth Coat of Arms of Australia](image.002.png)\n\n# Reporting Standard LRS 118.0\n\n## Operational 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 Operational 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 118 Capital Adequacy: Operational Risk Charge (LPS 118).\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. 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\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\nInformation 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\nMethod 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\nReporting 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\nQuality 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\nAuthorisation\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\nInterpretation\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":"Operational Risk Charge","sectionType":"part","heading":"Operational Risk Charge","content":"![Commonwealth Coat of Arms of Australia](image.002.png)\n\n# Reporting Standard LRS 118.0\n\n## Operational 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 Operational 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 118 Capital Adequacy: Operational Risk Charge (LPS 118).\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. 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\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\nInformation 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\nMethod 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\nReporting 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\nQuality 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\nAuthorisation\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\nInterpretation\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":"part","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 Operational 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 118 Capital Adequacy: Operational Risk Charge (LPS 118).\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. 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\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\nInformation 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\nMethod 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\nReporting 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\nQuality 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\nAuthorisation\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":2},{"sectionNumber":"Variations","sectionType":"part","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":3},{"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.\n\nInterpretation\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":4},{"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":5},{"sectionNumber":"Definitions","sectionType":"division","heading":"Definitions","content":"### Definitions\n\nTerms highlighted in bold italics indicate that the definition is provided in these instructions.\n\nO\n\n| Operational Risk Charge for risk business (ORCR) – Accrued premium (12 months ending on reporting date)              | This is the total accrued premium (gross of reinsurance) in respect of risk business, for the period of 12 months ending on the reporting date.Accrued premium is defined in LPS 118.                                                                                                                                                     |\n| -------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| ORCR – Accrued premium (12 months ending on date 12 months prior to reporting date)                                  | This is the total accrued premium (gross of reinsurance) in respect of risk business, for the period of 12 months ending on the date that is 12 months prior to the reporting date.Accrued premium is defined in LPS 118.                                                                                                                 |\n| ORCR - Adjusted policy liabilities (net of reinsurance)                                                              | This is the total adjusted policy liabilities (net of reinsurance) determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112), in respect of risk business at the reporting date.                                                                                                       |\n| Operational Risk Charge for investment-linked business (ORCI) – Accrued premium (12 months ending on reporting date) | This is the total accrued premium (gross of reinsurance) in respect of investment-linked business, for the period of 12 months ending on the reporting date.Accrued premium is defined in LPS 118.                                                                                                                                        |\n| ORCI - Adjusted policy liabilities (gross of reinsurance)                                                            | This is the total adjusted policy liabilities (gross of reinsurance) determined in accordance with LPS 112, in respect of investment-linked business at the date 12 months prior to the reporting date.                                                                                                                                   |\n| ORCI - Adjusted policy liabilities (net of reinsurance)                                                              | This is the total adjusted policy liabilities (net of reinsurance) determined in accordance with LPS 112, in respect of investment-linked business at the reporting date.                                                                                                                                                                 |\n| ORCI - Gross claim payments to meet policy owner liabilities (12 months ending on reporting date)                    | This is all payments to meet liabilities to policy owners (gross of reinsurance) for the 12 months ending on the reporting date in respect of investment-linked business. This excludes payments that are used as premiums for another life policy issued by the life company to avoid double counting.                                   |\n| Operational Risk Charge for other business (ORCO) – Accrued premium (12 months ending on reporting date)             | This is the total accrued premium (gross of reinsurance), in respect of life business other than risk and investment-linked business, for the period of 12 months ending on the reporting date.Accrued premium is defined in LPS 118.                                                                                                     |\n| ORCO - Adjusted policy liabilities (gross of reinsurance)                                                            | This is the total adjusted policy liabilities (gross of reinsurance) determined in accordance with LPS 112, in respect of life business other than risk and investment-linked business at the date 12 months prior to the reporting date.                                                                                                 |\n| ORCO - Adjusted policy liabilities (net of reinsurance)                                                              | This is the total adjusted policy liabilities (net of reinsurance) determined in accordance with LPS 112, in respect of life business other than risk and investment-linked business at the reporting date.                                                                                                                               |\n| ORCO - Gross claim payments to meet policy owner liabilities (12 months ending on reporting date)                    | This is all payments to meet liabilities to policy owners (gross of reinsurance) for the 12 months ending on the reporting date in respect of life business other than risk and investment-linked business. This excludes payments that are used as premiums for another life policy issued by the life company to avoid double counting. |","sortOrder":6},{"sectionNumber":"Specific instructions","sectionType":"part","heading":"Specific instructions","content":"## Specific instructions\n\n### Reporting basis\n\nThis table applies to life companies including friendly societies. Data must be submitted at the level of each statutory fund for life insurers and the management fund for friendly societies.\n\nReport all information as at the reporting date.\n\n### Units of measurement\n\nThis values in this table must be completed in whole Australian dollars.\n\n### Table 1: Operational Risk Charge\n\n| Column 1 | Report the value for each of the items listed below. |\n| -------- | ---------------------------------------------------- |\n\n1.  Operational risk charge for risk business (ORCR)\n\n| Item 1.1 | Report ORCR – Accrued premium (12 months ending on reporting date)                         |\n| -------- | ------------------------------------------------------------------------------------------ |\n| Item 1.2 | Report ORCR - Accrued premium (12 months ending on date 12 months prior to reporting date) |\n| Item 1.3 | Report ORCR - Adjusted policy liabilities (net of reinsurance)                             |\n\n2. Operational risk charge for investment-linked business (ORCI)\n\n| Item 2.1 | Report ORCI - Accrued premium (12 months ending on reporting date)                                                                                     |\n| -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| Item 2.2 | Report ORCI - Adjusted policy liabilities (gross of reinsurance)This item must be reported at the date which is 12 months prior to the reporting date. |\n| Item 2.3 | Report ORCI - Adjusted policy liabilities (net of reinsurance)                                                                                         |\n| Item 2.4 | Report ORCI - Gross claim payments to meet policy owner liabilities (12 months ending on reporting date)                                               |\n\n3. Operational risk charge for other business (ORCO)\n\n| Item 3.1 | Report ORCO - Accrued premium (12 months ending on reporting date)                                                                                 |\n| -------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Item 3.2 | Report ORCO - Adjusted policy liabilities (gross of reinsurance)This item must be reported at the date which is 12 months prior to reporting date. |\n| Item 3.3 | Report ORCO - Adjusted policy liabilities (net of reinsurance)                                                                                     |\n| Item 3.4 | Report ORCO - Gross claim payments to meet policy owner liabilities (12 months ending on reporting date)                                           |","sortOrder":7},{"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 statutory fund for life insurers and the management fund for friendly societies.\n\nReport all information as at the reporting date.","sortOrder":8},{"sectionNumber":"Units of measurement","sectionType":"division","heading":"Units of measurement","content":"### Units of measurement\n\nThis values in this table must be completed in whole Australian dollars.","sortOrder":9},{"sectionNumber":"Table 1: Operational Risk Charge","sectionType":"division","heading":"Table 1: Operational Risk Charge","content":"### Table 1: Operational Risk Charge\n\n| Column 1 | Report the value for each of the items listed below. |\n| -------- | ---------------------------------------------------- |\n\n1.  Operational risk charge for risk business (ORCR)\n\n| Item 1.1 | Report ORCR – Accrued premium (12 months ending on reporting date)                         |\n| -------- | ------------------------------------------------------------------------------------------ |\n| Item 1.2 | Report ORCR - Accrued premium (12 months ending on date 12 months prior to reporting date) |\n| Item 1.3 | Report ORCR - Adjusted policy liabilities (net of reinsurance)                             |\n\n2. Operational risk charge for investment-linked business (ORCI)\n\n| Item 2.1 | Report ORCI - Accrued premium (12 months ending on reporting date)                                                                                     |\n| -------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ |\n| Item 2.2 | Report ORCI - Adjusted policy liabilities (gross of reinsurance)This item must be reported at the date which is 12 months prior to the reporting date. |\n| Item 2.3 | Report ORCI - Adjusted policy liabilities (net of reinsurance)                                                                                         |\n| Item 2.4 | Report ORCI - Gross claim payments to meet policy owner liabilities (12 months ending on reporting date)                                               |\n\n3. Operational risk charge for other business (ORCO)\n\n| Item 3.1 | Report ORCO - Accrued premium (12 months ending on reporting date)                                                                                 |\n| -------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Item 3.2 | Report ORCO - Adjusted policy liabilities (gross of reinsurance)This item must be reported at the date which is 12 months prior to reporting date. |\n| Item 3.3 | Report ORCO - Adjusted policy liabilities (net of reinsurance)                                                                                     |\n| Item 3.4 | Report ORCO - Gross claim payments to meet policy owner liabilities (12 months ending on reporting date)                                           |","sortOrder":10}],"analysis":{"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"},"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":false,"description":"This instrument replaces and formalises an existing reporting standard for the Operational Risk Charge but does not materially expand the universe of entities or introduce new prudential charges. It continues to require life companies to provide the data APRA needs to calculate operational risk capital and aligns reporting mechanics with referenced prudential standards (paras 1–4, 18). The principal shifts are procedural and implementation‑level (explicit quarterly + annual submissions, auditor assurance requirements, digital authorisation, and fund‑level granularity), rather than an expansion of substantive scope. Transitional provisions (para 17) manage carry‑over from the old standard rather than extend regulatory reach."},"complexity_factors":["Cross‑references to multiple other prudential instruments and standards (LPS 118, LPS 112, LPS 001, LRS 001, LPS 310) which determine key definitions and calculation methods (paras 13, 18–19).","Reporting granularity: data must be reported at each statutory fund for insurers and management fund for friendly societies (Specific instructions — Reporting basis).","Three business categories (risk, investment‑linked, other) with 3–4 distinct data items each (total ~11–12 core fields across Table 1 and Definitions).","Dual frequency model: quarterly unaudited submissions plus one annual audited submission (five submissions per year) with different assurance expectations and separate due dates (paras 7–9).","Auditor assurance requirement: annual review and at least a limited assurance engagement per professional auditing standards, creating interaction between prudential and auditing frameworks (para 11).","APRA discretion: multiple clauses allowing APRA to vary reporting frequency/contents for particular firms or grant extensions (paras 8, 10, 16), introducing conditionality and potential variability. ","Transition and legacy reporting: transitional rules require reporting under the old standard for certain periods, creating overlap and timing complexity during changeover (para 17).","Authorisation and IT requirement: mandatory digital certificate signature and officer authorisation (paras 14–15) add procedural and technical compliance steps.","Repeated and duplicated text in the instrument increases reading complexity and the chance of overlooking key differences between near‑identical sections (document structure observation)."],"plain_english_summary":"**What this instrument does (mechanically)**\n\n- Establishes a reporting standard (LRS 118.0) that requires every life insurer and friendly society registered under the Life Insurance Act 1995 to provide APRA with the data APRA needs to calculate the insurer’s Operational Risk Charge (the capital add-on for operational risk) (paras 1–4, 18).  \n- Specifies exactly what data fields must be reported (accrued premiums, adjusted policy liabilities, and certain gross claim payments) broken down by three business streams: risk business, investment‑linked business, and other life business (Definitions, Table 1, Specific Instructions).  \n- Sets how and when the data must be submitted: electronic format (or other APRA‑notified method), quarterly unaudited submissions and an annual audited submission (effectively five submissions per financial year), with due dates (20 business days for quarterly, three months for annual) and APRA power to vary reporting frequency/timings for individual firms (paras 6–10, 7 note 1, 8).  \n- Requires governance, internal controls and auditor review of the reporting processes: the data must come from systems and controls reviewed and tested by the company’s Auditor (at least on an annual basis and at least a limited assurance engagement), and the board/senior management must have appropriate authorisation procedures in place (paras 11–13).  \n- Requires electronic authorisation of submissions (digital certificate acceptable to APRA) and that the submitter be authorised by the Principal Executive Officer or the Chief Financial Officer (paras 14–15).  \n- Gives APRA power to vary the reporting requirements for a particular life company by written notice, and contains transitional rules for reports that fall under the old standard (paras 16–17).  \n- Relies on definitions and methods in other prudential instruments and accounting/auditing standards (notably LPS 118, LPS 112, LRS 001 and LPS 310) (paras 18–19 and cross‑references throughout).\n\n**Who this affects**\n\n- Primary: all life insurance companies and friendly societies registered under the Life Insurance Act 1995 (para 3). Reporting is at the statutory fund level for insurers and the management fund for friendly societies (Specific instructions — Reporting basis).\n- Secondary: auditors of those life companies (must perform reviews and limited assurance) and the senior officers who must authorise submissions (PEO or CFO) (paras 11, 14–15).\n\n**Why it matters (stated purpose and practical effect)**\n\n- Stated purpose: APRA will use the reported information for prudential supervision, including assessing compliance with capital adequacy standards — specifically to calculate operational risk capital under Prudential Standard LPS 118 (para 2).  \n\n- Practical effects and trade‑offs:  \n  - Compliance and operating cost: life companies must maintain systems, controls and audit processes that produce the required fields (paras 11–13). That creates recurring compliance, IT and audit costs (audit limited assurance annually plus audit involvement for the annual audited submission).  \n  - Granularity and frequency: reporting at statutory‑fund level and quarterly (unaudited) increases data granularity and frequency of reporting (para 7; Specific instructions). This improves the timeliness of APRA’s visibility but increases firms’ ongoing reporting burden.  \n  - Regulatory discretion: APRA can require more or less frequent reporting or alter requirements for a particular firm, and can vary reporting obligations by notice — this centralises decision power with APRA and creates regulatory uncertainty about future reporting intensity (paras 8, 16).  \n  - Dependence on other instruments: key calculations and definitions (e.g. accrued premium, adjusted policy liabilities) are set in other prudential standards (LPS 118, LPS 112, LPS 001), so firms must reconcile multiple instruments when implementing systems (paras 18–19).  \n\n**Who pays, who decides, and what behaviour changes**\n\n- Who pays: the life companies (and their statutory funds) bear the costs of data collection, systems, internal controls, and the auditor work required to support the reports.  \n- Who decides: APRA prescribes the reporting format and can alter frequency or content for particular firms by written notice; company boards and senior management decide and implement the internal controls and the data‑collection processes that produce the submissions (paras 6, 8, 11–12, 16).  \n- Behaviour changes required: firms must (a) collect the specified data at fund level and in whole Australian dollars, (b) run internal review and authorisation procedures, (c) submit quarterly unaudited data and an annual audited set, (d) have the Auditor perform and document review/limited assurance, and (e) digitally sign submissions and ensure appropriate executive authorisation (Specific instructions; paras 6, 7, 9–15).  \n\n**Costs, incentives and implementation risks**\n\n- Direct costs: IT/system changes to capture fund‑level fields, internal compliance staff time, and auditor fees for the required assurance work.  \n- Incentives: because APRA uses these data to assess operational risk capital, firms are incentivised to improve the accuracy and completeness of risk/business segmentation and to ensure actuarial calculations and adjusted liabilities align with referenced prudential standards (paras 2, 13).  \n- Risks and trade‑offs: (a) cross‑instrument dependence increases implementation complexity and the chance of inconsistency if definitions change elsewhere; (b) APRA’s discretion to vary reporting may impose asymmetric burdens on particular firms; (c) smaller friendly societies may face proportionally higher costs to implement the controls and audit processes required (paras 8, 16, 18).  \n\n**Concrete references to important procedural requirements**\n\n- Frequency and timing: quarterly unaudited within 20 business days; annual audited within 3 months; five submissions per financial year for a typical full year (paras 7, 9).  \n- Assurance: auditor review and testing at least annually and at least a limited assurance engagement consistent with Australian auditing standards, subject to consistency with LPS 310 (para 11).  \n- Authorisation: digital certificate signature acceptable to APRA; submitter must be authorised by Principal Executive Officer or Chief Financial Officer (paras 14–15).  \n\n(See paras and table references throughout the Reporting Standard for the specific legal text and definitions.)"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation remains focused on its original purpose: prescribing reporting requirements for operational risk capital calculations by life insurers. The 2023 version updates the previous standard but does not expand beyond the core mandate of data collection for prudential supervision."},"complexity_factors":["Multiple cross-references to other standards (LRS 001, LPS 118, LPS 112, LPS 310, LPS 001) requiring readers to consult external documents","Nested conditional logic in reporting dates (paragraphs 7-10 with exceptions in paragraph 8 and extensions in paragraph 10)","Dual reporting tracks (quarterly unaudited vs annual audited) with different due dates and assurance requirements","Transitional provisions (paragraph 17) creating parallel obligations under old and new standards","Specific technical definitions imported from prudential standards rather than defined within the instrument","Precise data field requirements with temporal specifications (e.g., '12 months ending on date 12 months prior to reporting date')","Quality control requirements referencing external professional standards (Auditing and Assurance Standards Board)"],"plain_english_summary":"This APRA reporting standard requires all Australian life insurers (including friendly societies) to submit electronic data on their Operational Risk Charge—the capital buffer for failures like fraud, systems or human error. Filings comprise four unaudited quarterly reports and one audited annual report, with auditor checks and CEO/CFO authorisation and digital signatures.\n\nAPRA uses the submitted figures (premiums, liabilities and claims across risk, investment‑linked and other business) to judge insurers’ operational resilience and capital adequacy to protect policyholders."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-119-of-2023","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-119-of-2023/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-119-of-2023/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-119-of-2023/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-119-of-2023/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-119-of-2023/documents"}}