{"id":"F2025L00322","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 13 of 2025","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-13-of-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":106126,"registerId":"commonwealth-F2025L00322-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Financial Sector (Collection of Data) (reporting standard) determination No. 13 of 2025","content":"![Commonwealth Coat of Arms of Australia](image.001.png)\n\nFinancial Sector (Collection of Data) (reporting standard) determination No. 13 of 2025\n\nReporting Standard GRS 116.1 Probable Maximum Loss for LMIs\n\nFinancial Sector (Collection of Data) Act 2001\n\nI, Andrew Robertson, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:\n\n1. revoke Financial Sector (Collection of Data) (reporting standard) determination No. 30 of 2014, including Reporting Standard GRS 116.1 Probable Maximum Loss for LMIs made under that Determination; and\n\n1. determine Reporting Standard GRS 116.1 Probable Maximum Loss for LMIs, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of that reporting standard.\n\nUnder section 15 of the Act, I declare that Reporting Standard GRS 116.1 Probable Maximum Loss for LMIs shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on the day after this instrument is registered on the Federal Register of Legislation.\n\nThis instrument commences at the start of the day after the day it is registered on the Federal Register of Legislation.\n\nDated: 6 March 2025\n\nAndrew Robertson\n\nGeneral Manager - Chief Data Officer\n\nTechnology and Data Division\n\nInterpretation\n\nIn this Determination:\n\nAPRA means the Australian Prudential Regulation Authority.\n\nFederal Register of Legislation means the register established under section 15A of the Legislation Act 2003.\n\nfinancial sector entity has the meaning given by section 5 of the Act.\n\nSchedule\n\nReporting Standard GRS 116.1 Probable Maximum Loss for LMIs comprises the document commencing on the following page.\n\n![Commonwealth Coat of Arms of Australia](image.002.png)\n\nReporting Standard GRS 116.1\n\nProbable Maximum Loss for LMIs\n\nObjective of this Reporting Standard\n\nThis Reporting Standard sets out the requirements for the provision of information to APRA relating to a lenders mortgage insurer’s Probable Maximum Loss and Insurance Concentration Risk Charge.\n\nIt includes Form GRF 116.1 Probable Maximum Loss for LMIs – Standard Loans, Form GRF 116.2 Probable Maximum Loss for LMIs – Non-Standard Loans, Form GRF 116.3 Probable Maximum Loss for LMIs – Commercial Loans, Form GRF 116.4 LMI Concentration Risk Charge and Form GRF 116.5 Probable Maximum Loss for LMIs – Additional Information and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.\n\nAuthority\n\n1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.\n\nPurpose\n\n1. Information collected in Form GRF 116.1 Probable Maximum Loss for LMIs – Standard Loans, Form GRF 116.2 Probable Maximum Loss for LMIs – Non-Standard Loans, Form GRF 116.3 Probable Maximum Loss for LMIs – Commercial Loans, Form GRF 116.4 LMI Concentration Risk Charge and Form GRF 116.5 Probable Maximum Loss for LMIs – Additional Information (the GRF 116.1 series) is used by APRA for the purpose of prudential supervision including assessing compliance with the capital standards.\n\nApplication and commencement\n\n1. This Reporting Standard applies to all general insurers authorised under the Insurance Act 1973 (insurers) that are lenders mortgage insurers under paragraph 8 of Prudential Standard CPS 001 Defined terms (CPS001). This Reporting Standard applies for reporting periods ending on or after 1 April 2025.\n\nInformation required\n\n1. An insurer must provide APRA with the information required by the GRF 116.1 series for each reporting period.\n\nForms and method of submission\n\n1. The information required by this Reporting Standard must be given to APRA:\n\n1. in electronic format using an electronic method available on APRA’s website; or\n\n(b) by a method notified by APRA prior to submission.\n\nReporting periods and due dates\n\n1. Subject to paragraph 7, an insurer must provide the information required by this Reporting Standard:\n\n1. in respect of each quarter based on the financial year of the insurer; and\n2. in respect of each financial year of the insurer.\n\nNote: The annual information required from an insurer by paragraphs 4, 5 and 6(b), together with certain annual information required by other reporting standards, will form part of the insurer’s yearly statutory accounts within the meaning of section 3 of the Insurance Act 1973 (the Insurance Act). This means that the information must be audited in accordance with paragraph 49J(1)(a) of the Insurance Act. Under subsection 49J(3), the principal auditor of the insurer must give the insurer a certificate relating to the yearly statutory accounts, and that certificate must contain statements of the auditor’s opinions on the matters required by the prudential standards to be dealt with in the certificate.\n\n1. If, having regard to the particular circumstances of an insurer, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 6(a) or 6(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular insurer.\n2. The information required by this Reporting Standard in respect of an insurer must be provided to APRA:\n 1. within the time stated in Reporting Standard GRS 001 Reporting Requirements (GRS 001); or\n 2. in the case of information provided in accordance with paragraph 7, within the time specified by notice in writing.\n\nNote: Paragraph 49L(1)(a) of the Insurance Act provides that the auditor’s certificate required under subsection 49J(3) of that Act must be lodged with APRA in accordance with the prudential standards. The prudential standards provide that the certificate must be submitted to APRA together with the yearly statutory accounts. Accordingly, the auditor’s certificate relating to the annual information referred to in subparagraph 6(b) must be provided to APRA by the time specified in GRS 001 (unless an extension of time is granted under GRS 001).\n\nQuality control\n\n1. The information provided by an insurer under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Appointed Auditor of the insurer. This will require the Appointed Auditor to review and test the insurer’s systems, processes and controls designed to enable the insurer to report reliable financial information to APRA. This review and testing must be done on:\n\n1. an annual basis or more frequently if necessary to enable the Appointed Auditor to form an opinion on the reliability and accuracy of data; and\n2. at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board (AUASB) as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard GPS 310 Audit and Related Matters.\n 1. All information provided by an insurer under this Reporting Standard must be subject to systems, processes and controls developed by the insurer for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the insurer to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.\n\nAuthorisation\n\n1. When an officer, or agent, of an insurer provides the information required by this Reporting Standard using an electronic format it will be necessary for an officer, or agent, to digitally sign the relevant information using a digital certificate acceptable to APRA.\n2. If an insurer provides the information required by this Reporting Standard through an agent who submits using an electronic format on the insurer’s behalf, the insurer must:\n 1. obtain from the agent a copy of the completed form with the information provided to APRA; and\n 2. retain the completed copy.\n3. An officer, or agent, of an insurer who submits the information under this Reporting Standard for, or on behalf of, the insurer must be authorised by either:\n\n1. the Principal Executive Officer of the insurer; or\n2. the Chief Financial Officer of the insurer.\n\nVariations\n\n1. APRA may, by written notice to the insurer, vary the reporting requirements of the GRF 116.1 series in relation to that insurer.\n\nTransition\n\n1. An insurer to which the Reporting Standard applies 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\n1. that ended before the date of revocation; and\n2. in relation to which the insurer 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 an insurer 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 insurer is still required to provide any overdue reporting documents in accordance with the old reporting standard.\n\nInterpretation\n\n1. In this Reporting Standard (including the attachments):\n\n1. unless the contrary intention appears, words and expressions have the meanings given to them in (CPS 001); and\n2. Appointed Auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act;\n\nAPRA-authorised reinsurer means an insurer carrying on reinsurance business. For the purposes of this definition, a Lloyd’s underwriter as defined under the Insurance Act is an APRA-authorised reinsurer if it carries on reinsurance business;\n\ncapital standards means the prudential standards which relate to capital adequacy as defined in CPS 001;\n\nChief Financial Officer means the chief financial officer of the insurer, by whatever name called;\n\nfinancial year means the financial year (within the meaning in the Corporations Act 2001) of the insurer;\n\nforeign insurer means a foreign general insurer within the meaning of the Insurance Act;\n\nNote: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.\n\ngeneral instruction guide refers to the general instruction guide set out in Attachment A of GRS 001;\n\nInsurance Act means the Insurance Act 1973;\n\ninsurer means a general insurer within the meaning of section 11 of the Insurance Act;\n\nNote: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised reinsurance entity’ is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.\n\nnon-APRA-authorised reinsurer means any reinsurer that is not an APRA-authorised reinsurer;\n\nPrincipal Executive Officer means the principal executive officer of the insurer, by whatever name called, and whether or not he or she is a member of the governing board of the insurer; and\n\nreporting period means a period mentioned in subparagraph 6(a) or (b) or, if applicable, paragraph 7.\n\n| GRF_116_1: Probable Maximum Loss for LMIs - Standard Loans |\n| ---------------------------------------------------------- |\n\n| Australian Business Number | Institution Name |\n| -------------------------- | ------------------------------------- |\n| | |\n| Reporting Period | Scale Factor |\n| Quarterly / Annual | Thousands of dollars no decimal place |\n| Reporting Consolidation | |\n| Licensed insurer | |\n\n| Section 1: ADI |\n| -------------- |\n\n| 1.1. 100 per cent and top cover |\n| ------------------------------- |\n\n```html\n

LVR greater than (%)

LVR less than or equal to (%)

Coverage proportion (%)

Age

Total sum insured

PD factor

LGD factor

(100% cover)

LGD factor

(top cover)

PML

< 3 years

3 < 5 years

5 < 10 years

>= 10 years

(1)

(2)

(3)

(4.1)

(4.2)

(4.3)

(4.4)

(5)

(6)

(7)

(8)

(9)

100

100

95

40

90

35

85

30

80

25

70

20

60

0

Total

\n```\n\n| 1.2. Pool cover |\n| --------------- |\n\n```html\n

Weighted-average LVR (%)

Weighted-average age

Seasoning factor

Total sum insured

PD factor

LGD factor

PML

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Total

\n```\n\n| Section 2: Non-APRA regulated |\n| ----------------------------- |\n\n| 2.1. 100 per cent and top cover |\n| ------------------------------- |\n\n```html\n

LVR greater than (%)

LVR less than or equal to (%)

Coverage proportion (%)

Age

Total sum insured

PD factor

LGD factor

(100% cover)

LGD factor

(top cover)

PML

< 3 years

3 < 5 years

5 < 10 years

>= 10 years

(1)

(2)

(3)

(4.1)

(4.2)

(4.3)

(4.4)

(5)

(6)

(7)

(8)

(9)

100

100

95

40

90

35

85

30

80

25

70

20

60

0

Total

\n```\n\n| 2.2. Pool cover |\n| --------------- |\n\n```html\n

Weighted-average LVR (%)

Weighted-average age

Seasoning factor

Total sum insured

PD factor

LGD factor

PML

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Total

\n```\n\n| GRF_116_2: Probable Maximum Loss for LMIs - Non-Standard Loans |\n| -------------------------------------------------------------- |\n\n| Australian Business Number | Institution Name |\n| -------------------------- | ------------------------------------- |\n| | |\n| Reporting Period | Scale Factor |\n| Quarterly / Annual | Thousands of dollars no decimal place |\n| Reporting Consolidation | |\n| Licensed insurer | |\n\n| 1. ADI |\n| ------ |\n\n| 1.1. 100 per cent and top cover |\n| ------------------------------- |\n\n```html\n

LVR greater than (%)

LVR less than or equal to (%)

Coverage proportion (%)

Age

Total sum insured

PD factor

LGD factor

(100% cover)

LGD factor

(top cover)

PML

< 3 years

3 < 5 years

5 < 10 years

>= 10 years

(1)

(2)

(3)

(4.1)

(4.2)

(4.3)

(4.4)

(5)

(6)

(7)

(8)

(9)

100

100

95

40

90

35

85

30

80

25

70

20

60

0

Total

\n```\n\n| 1.2. Pool cover |\n| --------------- |\n\n```html\n

Weighted-average LVR (%)

Weighted-average age

Seasoning factor

Total sum insured

PD factor

LGD factor

PML

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Total

\n```\n\n| 2. Non-APRA regulated |\n| --------------------- |\n\n| 2.1. 100 per cent and top cover |\n| ------------------------------- |\n\n```html\n

LVR greater than (%)

LVR less than or equal to (%)

Coverage proportion (%)

Age

Total sum insured

PD factor

LGD factor

(100% cover)

LGD factor

(top cover)

PML

< 3 years

3 < 5 years

5 < 10 years

>= 10 years

(1)

(2)

(3)

(4.1)

(4.2)

(4.3)

(4.4)

(5)

(6)

(7)

(8)

(9)

100

100

95

40

90

35

85

30

80

25

70

20

60

0

Total

\n```\n\n| 2.2. Pool cover |\n| --------------- |\n\n```html\n

Weighted-average LVR (%)

Weighted-average age

Seasoning factor

Total sum insured

PD factor

LGD factor

PML

(1)

(2)

(3)

(4)

(5)

(6)

(7)

Total

\n```\n\n| GRF_116_3: Probable Maximum Loss for LMIs - Commercial Loans |\n| ------------------------------------------------------------ |\n\n| Australian Business Number | Institution Name |\n| -------------------------- | ------------------------------------- |\n| | |\n| Reporting Period | Scale Factor |\n| Quarterly / Annual | Thousands of dollars no decimal place |\n| Reporting Consolidation | |\n| Licensed insurer | |\n\n| Factor | ADI | Non-APRA regulated | Total sum insured | PML |\n| ------ | --- | ------------------ | ----------------- | --- |\n| (1) | (2) | (3) | (4) | (5) |\n| 8% | | | | |\n\n| GRF_116_4: LMI Concentration Risk Charge |\n| ---------------------------------------- |\n\n| Australian Business Number | Institution Name |\n| -------------------------- | ------------------------------------- |\n| | |\n| Reporting Period | Scale Factor |\n| Quarterly / Annual | Thousands of dollars no decimal place |\n| Reporting Consolidation | |\n| Licensed insurer | |\n\n| 1. Summary |\n| ---------- |\n\n```html\n

Sum insured

PML

1.1 Standard loans

1.1.1. ADI - 100 per cent and top cover

1.1.2. ADI - pool cover

1.1.3. Non-APRA regulated - 100 per cent and top cover

1.1.4. Non-APRA regulated - pool cover

1.2. Non-standard loans

1.2.1. ADI - 100 per cent and top cover

1.2.2. ADI - pool cover

1.2.3. Non-APRA regulated - 100 per cent and top cover

1.2.4. Non-APRA regulated - pool cover

1.3 Commercial loans

1.3.1. ADI

1.3.2. Non-APRA regulated

1.4. Total

2. LMI Concentration Risk Charge (LMICRC) calculation

\n```\n\n```html\n

Year

Total

1

2

3

2.1. PML

2.2. Adjustment to the PML

2.3. Adjusted PML

2.4. Available reinsurance

2.5. Allowable reinsurance

2.6. PML net of reinsurance

2.7. Net premiums liability deduction

2.8. Adjustments to LMICRC as approved by APRA

2.9. LMI Concentration Risk Charge

2.10. LMI Concentration Risk Charge / PML

\n```\n\n| GRF_116_5: Probable Maximum Loss for LMIs - Additional Information |\n| ------------------------------------------------------------------ |\n\n| Australian Business Number | Institution Name |\n| -------------------------- | ------------------------------------- |\n| | |\n| Reporting Period | Scale Factor |\n| Quarterly / Annual | Thousands of dollars no decimal place |\n| Reporting Consolidation | |\n| Licensed insurer | |\n\n| Section 1: Inwards reinsurance |\n| ------------------------------ |\n\n| 1.1 Standard and non-standard loans - 100 per cent and top cover |\n| ---------------------------------------------------------------- |\n\n```html\n

LVR greater than (%)

LVR less than or equal to (%)

Coverage proportion (%)

Age

Total inwards reinsurance

Of which non-APRA regulated

Of which non-standard loans

< 3 years

3 < 5 years

5 < 10 years

>= 10 years

(1)

(2)

(3)

(4.1)

(4.2)

(4.3)

(4.4)

(5)

(6)

(7)

100

100

95

40

90

35

85

30

80

25

70

20

60

0

Total

Of which: non-APRA regulated

Of which: non-standard loans

\n```\n\n| 1.2 Standard and non-standard loans - pool cover |\n| ------------------------------------------------ |\n\n```html\n

Weighted-average LVR (%)

Weighted-average age

Total inwards reinsurance

Of which non-APRA regulated

Of which non-standard loans

(1)

(2)

(3)

(4)

(5)

Total

\n```\n\n| 1.3 Commercial loans |\n| -------------------- |\n\n| Total inwards reinsurance | Of which non-APRA regulated | | | | | |\n| ------------------------- | --------------------------- | --- | --- | --- | --- | --- |\n| (1) | (2) | | | | | |\n| | | | | | | |\n\n| 1.4 Total inwards reinsurance |\n| ----------------------------- |\n\n| Total inwards reinsurance | Of which non-APRA regulated | Of which non-standard loans | | | | |\n| ------------------------- | --------------------------- | --------------------------- | --- | --- | --- | --- |\n| (1) | (2) | (3) | | | | |\n| | | | | | | |\n\n| Section 2: Large liability exposures by originator |\n| -------------------------------------------------- |\n\n| Large exposures | Originator | ACN / ABN | Sum insured | Open policy (%) | | |\n| --------------- | ---------- | --------- | ----------- | --------------- | --- | --- |\n| (1) | (2) | (3) | (4) | (5) | | |\n| | | | | | | |\n| 1 | | | | | | |\n| 2 | | | | | | |\n| 3 | | | | | | |\n| 4 | | | | | | |\n| 5 | | | | | | |\n\nGRF\\_116\\_1 Probable Maximum Loss for LMIs - Standard Loans\n\nThese instructions must be read in conjunction with the general instruction guide.\n\nExplanatory notes\n\nStandard loan\n\nA standard loan is one which meets the criteria defined in Attachment A of Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge (GPS 116).\n\n100% cover\n\n100% cover provides insurance for 100% of the loan amount.\n\nTop cover\n\nTop cover provides insurance for less than 100% of the loan amount.\n\nPool cover\n\nA pooled LMI policy, or pool cover, is lenders mortgage insurance underwritten and issued in respect of a pool of loans. For clarity, each loan is not individually insured.\n\nSection 1: ADI\n\nReport in this section information relating to loans approved, advanced and funded by an authorised deposit-taking institution (ADI). An ADI has an in force authority under subsection 9(3) of the Banking Act 1959.\n\nSection 2: Non-APRA regulated\n\nReport in this section information relating to loans approved, advance and funded by entities that are not ADIs.\n\nInstructions for specific items\n\nSections 1 and 2 - 1.1 and 2.1: 100 per cent and top cover\n\n1. LVR greater than (%)\n\nThe Loan-to-Valuation Ratio (LVR) is the ratio of the amount of the loan to the value of the secured residential property, as at the date of origination of the loan. Where the mortgage insurance premium is capitalised in the loan amount, the LVR must be calculated including the premium; that is, the loan amount must be increased by the amount of the capitalised premium, irrespective of whether the premium is insured. The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan.\n\nLMIs are required to report the sum insured according to the following categories: LVR of less than 60.01, 60.01 to 70, 70.01 to 80, 80.01 to 85, 85.01 to 90, 90.01 to 95, 95.01 to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2.\n\n1. LVR less than or equal to (%)\n\nThe Loan-to-Valuation Ratio (LVR) is the ratio of the amount of the loan to the value of the secured residential property, as at the date of origination of the loan. Where the mortgage insurance premium is capitalised in the loan amount, the LVR must be calculated including the premium; that is, the loan amount must be increased by the amount of the capitalised premium, irrespective of whether the premium is insured. The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan.\n\nLMIs are required to report the sum insured according to the following categories: LVR of less than 60.01, 60.01 to 70, 70.01 to 80, 80.01 to 85, 85.01 to 90, 90.01 to 95, 95.01 to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2.\n\n1. Coverage proportion (%)\n\nThis is the percentage of cover for which the insurance provides over the loan amount.\n\nSelect from the appropriate coverage proportion percentage: 20, 25, 30, 35, 40 or 100 per cent.\"\n\n1. < 3 years\n2. 3 < 5 years\n3. 5 < 10 years\n\n1. \\>= 10 years\n\nAge is the length of time from the date of origination of the loan to the date of calculation for the purposes of determining the seasoning factors in Attachment A of GPS 116.\n\nReport the sums insured for the LMI policies according to the following categories: age of less than three years, three to less than five years, five to less than 10 years, and more than 10 years.\n\n1. Total sum insured\n\nThe sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy.\n\nIt is automatically calculated as the sum of Columns 4.1 to 4.4 multiplied by their corresponding seasoning factors.\n\n1. PD factor\n\nThe probability of default (PD) is the risk of default by the borrower. It varies according to LVR as per Attachment A of GPS 116.\n\nThis is automatically determined from the LVR percentages in Columns 1 and 2.\n\n1. LGD factor (100% cover)\n\nLoss given default (LGD) is the loss to the LMI upon default by the borrower. It varies according to LVR as per Attachment A of GPS 116. The LGD factors are for 100% cover.\n\nThis is automatically determined from the LVR percentages in Columns 1 and 2.\n\n1. LGD factor (top cover)\n\nThis is the LGD factor for top cover. It is automatically calculated as Column 7 divided by Column 3, subject to a maximum of 100%.\n\n1. PML\n\nFor each individual LMI policy, the probable maximum loss (PML) is the sum insured multiplied by the seasoning, PD and LGD factors applicable to the policy. It is determined in accordance with Attachment A of GPS 116.\n\nIt is automatically calculated as Column 5 multiplied by Column 6 multiplied by Column 8.\n\nSections 1 and 2 - 1.2 and 2.2: Pool cover\n\n1. Weighted-average LVR (%)\n\nInput the weighted-average LVR as a percentage for each pool. The weighted-average LVR should be calculated outside of the reporting forms and should not be based on summarised data.\n\n1. Weighted-average age\n\nInput the weighted-average age (in years) for each pool. The weighted-average age should be calculated outside of the reporting forms and should not be based on summarised data.\n\n1. Seasoning factor\n\nThis is the seasoning factor corresponding to the weighted-average age of the pool.\n\nIt is automatically determined from the weighted-average age in Column 2.\n\n1. Total sum insured\n\nReport the sum insured for pools of loans. The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy.\n\n1. PD factor\n\nThis is the PD corresponding to the weighted-average LVR of the pool.\n\nIt is automatically determined from the weighted average LVR percentage in Column 1.\n\n1. LGD factor\n\nThis is the LGD corresponding to the weighted-average LVR of the pool.\n\nIt is automatically determined from the weighted-average LVR percentage in Column 1.\n\n1. PML\n\nThis is automatically calculated as Column 4 multiplied by Column 3 multiplied by Column 5 multiplied by Column 6.\n\nGRF\\_116\\_2 Probable Maximum Loss for LMIs - Non-Standard Loans\n\nThese instructions must be read in conjunction with the general instruction guide.\n\nExplanatory notes\n\nNon-standard loan\n\nA non-standard loan is a loan predominantly secured by residential property which does not meet the criteria for a standard loan as defined in Attachment A of GPS 116 and/or where APRA has given a direction that the loan should be classified as a non-standard loan.\n\n100% cover\n\n100% cover provides insurance for 100% of the loan amount.\n\nTop cover\n\nTop cover provides insurance for less than 100% of the loan amount.\n\nPool cover\n\nA pooled LMI policy, or pool cover, is lenders mortgage insurance underwritten and issued in respect of a pool of loans. For clarity, each loan is not individually insured.\n\nSection 1: ADI\n\nReport in this section information relating to loans approved, advanced and funded by an Authorised Deposit-taking Institution (ADI). An ADI has an in force authority under subsection 9(3) of the Banking Act 1959.\n\nSection 2: Non-APRA regulated\n\nReport in this section information relating to loans approved, advance and funded by entities that are not ADIs.\n\n \n\nInstructions for specific items\n\nSections 1 and 2 - 1.1 and 2.1: 100 per cent and top cover\n\n1. LVR greater than (%)\n\nThe Loan-to-Valuation Ratio (LVR) is the ratio of the amount of the loan to the value of the secured residential property, as at the date of origination of the loan. Where the mortgage insurance premium is capitalised in the loan amount, the LVR must be calculated including the premium; that is, the loan amount must be increased by the amount of the capitalised premium, irrespective of whether the premium is insured. The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan.\n\nLenders mortgage insurers (LMIs) are required to report the sum insured according to the following categories: LVR of less than 60.01, 60.01 to 70, 70.01 to 80, 80.01 to 85, 85.01 to 90, 90.01 to 95, 95.01 to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2.\n\n1. LVR less than or equal to (%)\n\nThe Loan-to-Valuation Ratio (LVR) is the ratio of the amount of the loan to the value of the secured residential property, as at the date of origination of the loan. Where the mortgage insurance premium is capitalised in the loan amount, the LVR must be calculated including the premium; that is, the loan amount must be increased by the amount of the capitalised premium, irrespective of whether the premium is insured. The inclusion of a First Home Owners Grant in the deposit for a mortgaged property will not otherwise increase the LVR of a loan.\n\nLenders mortgage insurers (LMIs) are required to report the sum insured according to the following categories: LVR of less than 60.01, 60.01 to 70, 70.01 to 80, 80.01 to 85, 85.01 to 90, 90.01 to 95, 95.01 to 100, and greater than 100 per cent. Report the relevant category by selecting the appropriate lower and upper bound percentages in Columns 1 and 2.\n\n1. Coverage proportion (%)\n\nThis is the percentage of cover for which the insurance provides over the loan amount.\n\nSelect from the appropriate coverage proportion percentage: 20, 25, 30, 35, 40 or 100 per cent.\n\n1. < 3 years\n2. 3 < 5 years\n3. 5 < 10 years\n\n1. \\>= 10 years\n\nAge is the length of time from the date of origination of the loan to the date of calculation for the purposes of determining the seasoning factors in Attachment A of GPS 116.\n\nReport the sums insured for the LMI policies according to the following categories: age of less than three years, three to less than five years, five to less than 10 years, and more than 10 years.\n\n1. Total sum insured\n\nThe sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy.\n\nIt is automatically calculated as the sum of Columns 4.1 to 4.4 multiplied by their corresponding seasoning factors.\n\n1. PD factor\n\nThe probability of default (PD) is the risk of default by the borrower. It varies according to LVR as per Attachment A of GPS 116.\n\nThis is automatically determined from the LVR percentages in Columns 1 and 2.\n\n1. LGD factor (100% cover)\n\nLoss given default (LGD) is the loss to the LMI upon default by the borrower. It varies according to LVR as per Attachment A of GPS 116. The LGD factors are for 100% cover.\n\nThis is automatically determined from the LVR percentages in Columns 1 and 2.\n\n1. LGD factor (top cover)\n\nThis is the LGD factor for top cover. It is automatically calculated as Column 7 divided by Column 3, subject to a maximum of 100%.\n\n1. PML\n\nFor each individual LMI policy, the probable maximum loss (PML) is the sum insured multiplied by the seasoning, PD and LGD factors applicable to the policy. It is determined in accordance with Attachment A of GPS 116.\n\nIt is automatically calculated as Column 5 multiplied by Column 6 multiplied by Column 8.\n\nSections 1 and 2 - 1.2 and 2.2: Pool cover\n\n1. Weighted-average LVR (%)\n\nInput the weighted-average LVR as a percentage for each pool. The weighted-average LVR should be calculated outside of the reporting forms and should not be based on summarised data.\n\n1. Weighted-average age\n\nInput the weighted-average age (in years) for each pool. The weighted-average age should be calculated outside of the reporting forms and should not be based on summarised data.\n\n1. Seasoning factor\n\nThis is the seasoning factor corresponding to the weighted-average age of the pool.\n\nIt is automatically determined from the weighted-average age in Column 2.\n\n1. Total sum insured\n\nReport the sum insured for pools of loans. The sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy.\n\n1. PD factor\n\nThis is the PD corresponding to the weighted-average LVR of the pool.\n\nIt is automatically determined from the weighted average LVR percentage in Column 1.\n\n1. LGD factor\n\nThis is the LGD corresponding to the weighted-average LVR of the pool.\n\nIt is automatically determined from the weighted-average LVR percentage in Column 1.\n\n1. PML\n\nThis is automatically calculated as Column 4 multiplied by Column 3 multiplied by Column 5 multiplied by Column 6.\n\nGRF\\_116\\_3 Probable Maximum Loss for LMIs - Commercial Loans\n\nThese instructions must be read in conjunction with the general instruction guide.\n\nExplanatory notes\n\nCommercial loan\n\nA commercial loan is a loan that is not predominantly secured by a registered mortgage over residential property, and/or where APRA has given a direction that the loan should be classified as a commercial loan.\n\nInstructions for specific items\n\n1. Factor\n\nThe probable maximum loss (PML) for a commercial loan is the sum insured multiplied by 8%.\n\n1. ADI\n\nReport the sum insured for individual lenders mortgage insurer (LMI) policies insuring commercial loans that are approved, advanced and funded by an authorised deposit-taking institution (ADI).\n\n1. Non-APRA regulated\n\nReport the sum insured for individual LMI policies insuring commercial loans that are approved, advanced and funded by a non-ADI.\n\n1. Total sum insured\n\nThe sum insured is the original exposure amount for an LMI as stated in the mortgage insurance policy.\n\n1. PML\n\nThis is automatically calculated as Column 4 multiplied by Column 1.\n\nGRF\\_116\\_4 LMI Concentration Risk Charge\n\nThese instructions must be read in conjunction with the general instruction guide.\n\nInstructions for specific items\n\n1. Summary\n\nThese columns represent the total sum insured and probable maximum losses (PMLs) across all loans types, coverage types and origination channels.\n\nAmounts are automatically derived from corresponding amounts in GRF 116.1 Probable Maximum Loss for LMIs – Standard Loans (GRF 116.1), GRF 116.2 Probable Maximum Loss for LMIs – Non-Standard Loans (GRF 116.2) and GRF 116.3 Probable Maximum Loss for LMIs – Commercial Loans (GRF 116.3).\n\n1. Standard loans\n\nThis is automatically calculated as the sum of Items 1.1.1 to 1.1.4.\n\n1. ADI - 100 per cent and top cover\n\nThis amount is automatically derived from Columns 5 and 9 of Table 1.1 in GRF 116.1.\n\n1. ADI - pool cover\n\nThis amount is automatically derived from Columns 4 and 7 of Table 1.2 in GRF 116.1.\n\n1. Non-APRA regulated - 100 per cent and top cover\n\nThis amount is automatically derived from Columns 5 and 9 of Table 2.1 in GRF 116.1.\n\n1. Non-APRA regulated - pool cover\n\nThis amount is automatically derived from Columns 4 and 7 of Table 2.2 in GRF 116.1.\n\n1. Non-standard loans\n\nThis is automatically calculated as the sum of Items 1.2.1 to 1.2.4.\n\n1. ADI - 100 per cent and top cover\n\nThis amount is automatically derived from Columns 5 and 9 of Table 1.1 in GRF 116.2.\n\n1. ADI - pool cover\n\nThis amount is automatically derived from Columns 4 and 7 of Table 1.2 in GRF 116.2.\n\n1. Non-APRA regulated - 100 per cent and top cover\n\nThis amount is automatically derived from Columns 5 and 9 of Table 2.1 in GRF 116.2.\n\n1. Non-APRA regulated - pool cover\n\nThis amount is automatically derived from Columns 4 and 7 of Table 2.2 in GRF 116.2.\n\n1. Commercial loans\n\nThis is automatically calculated as the sum of Items 1.3.1 and 1.3.2.\n\n1. ADI\n\nThis amount is automatically derived from GRF 116.3.\n\n1. Non-APRA regulated\n\nThis amount is automatically derived from GRF 116.3.\n\n1. Total\n\nThis is automatically calculated as the sum of Items 1.1, 1.2 and 1.3.\n\n1. LMI Concentration Risk Charge (LMICRC) calculation\n\nThis represents the years for the Prescribed Stress Scenario which is in the form of a three-year economic or property downturn. The PML must be allocated in the proportion of 25 per cent to year one, 50 per cent to year two and 25 per cent to year three of the downturn.\n\n1. PML\n\nThis represents the total PML across all loan types, coverage types and origination channels. Total PML is automatically allocated in the proportions of 25 per cent to year one, 50 per cent to year two and 25 per cent to year three of the Prescribed Stress Scenario.\n\n1. Adjustment to the PML\n\nFor a lenders mortgage insurer (LMI) no longer writing new business (i.e. in run-off), the sum insured is expected to decrease over the three-year scenario and it may be appropriate for an LMI in run-off to adjust its PML downwards. The methodology for adjusting an LMI’s PML in a run-off situation must be approved by APRA and documented in the LMI’s Reinsurance Management Strategy (ReMS).\n\nA reduction in PML is to be entered as a positive amount. Do not enter any other adjustments to PML in this field.\n\n1. Adjusted PML\n\nThis is automatically calculated as Item 2.1 less Item 2.2.\n\n1. Available reinsurance\n\nReport the amount of available reinsurance for each of the three years of the Prescribed Stress Scenario. The methodology for calculating available reinsurance is detailed in Attachment A of GPS 116.\n\n1. Allowable reinsurance\n\nThis is the lesser of Available reinsurance and 60 per cent of the Adjusted PML. It is automatically calculated by the form.\n\n1. PML net of reinsurance\n\nThis is automatically calculated as Item 2.3 less Item 2.5.\n\n1. Net premiums liability deduction\n\nIn determining the LMI Concentration Risk Charge (LMICRC), this is the value of the deduction from the PML, allowed under GPS 116, for net premiums liability of the LMI that relates to an economic downturn.\n\nIt is to be reported as a positive amount.\n\n1. Adjustments to LMICRC as approved by APRA\n\nIf APRA is of the view that the Standard Method for calculating the LMICRC component of the prescribed capital amount does not produce an appropriate outcome in respect of a reporting insurer, or a reporting insurer has used inappropriate judgement or estimation in calculating the LMICRC, APRA may adjust the LMICRC calculation for that reporting insurer.\n\nAn increase in the LMICRC is to be reported as a positive amount.\n\n1. LMI Concentration Risk Charge\n\nThis is automatically calculated as Item 2.6 less Item 2.7 plus Item 2.8.\n\n1. LMI Concentration Risk Charge / PML\n\nThis is automatically calculated as Item 2.9 divided by Item 2.3.\n\nGRF\\_116\\_5: Probable Maximum Loss for LMIs – Additional Information\n\nThese instructions must be read in conjunction with the general instruction guide.\n\nExplanatory notes\n\nSection 1: Inwards reinsurance\n\nThis section relates to policies held with the insurer by other lenders mortgage insurers (LMIs).\n\nSection 2: Large liability exposures by originator\n\nInformation is to be reported in this section for the five largest liability exposures by originator.\n\nCalculation of LMICRC\n\nThe information on this form will not directly affected the calculation of the LMI concentration risk charge\n\nSpecific reporting instructions\n\nSection 1: 1.1\n\n(1) LVR greater than (%)\n\n(2) LVR less than or equal to (%)\n\n(3) Coverage proportion (%)\n\n(4.1.) < 3 years\n\n(4.2.) 3 < 5 years\n\n(4.3.) 5 < 10 years\n\n(4.4.) >= 10 years\n\nRefer to instructions for the corresponding columns in Section 1: 1.1 of GRF 116.1.\n\n(5) Total inwards reinsurance\n\nReport the total inwards reinsurance exposure for the LMI relating to 100 per cent and top cover loans.\n\nThis is automatically calculated as the sum of Columns 4.1 to 4.4 multiplied by their corresponding seasoning factors.\n\n(6) Of which non-APRA regulated\n\nReport the total inwards reinsurance exposure relating to policies insuring 100 per cent and top cover loans that are approved, advanced and funded by non-ADIs.\n\n(7) Of which non-standards loans\n\nReport the total inwards reinsurance exposure relating to policies insuring non-standard, 100 per cent and top cover loans.\n\nSection 1: 1.2\n\n(1) Weighted average LVR (%)\n\n(2) Weighted-average age\n\nRefer to instructions for the corresponding columns in Section 1: 1.2 of GRF 116.1.\n\n(3) Total inwards reinsurance\n\nReport the total inwards reinsurance exposure for the LMI relating to pool cover loans.\n\n(4) Of which non-APRA regulated\n\nReport the total inwards reinsurance exposure relating to policies insuring pool cover loans that are approved, advanced and funded by non-ADIs.\n\n(5) Of which non-standard loans\n\nReport the total inwards reinsurance exposure relating to policies insuring non-standard, pool cover loans.\n\nSection 1: 1.3\n\n(1) Total inwards reinsurance\n\nReport the total inwards reinsurance exposure for the LMI relating to commercial loans.\n\n(2) Of which non-APRA regulated\n\nReport the total inwards reinsurance exposure relating to policies insuring commercial loans that are approved, advanced and funded by non-ADIs.\n\n \n\nSection 1: 1.4\n\n(1) Total inwards reinsurance\n\nThis is automatically calculated as the sum of Column 5 of 1.1, Column 3 of 1.2 and Column 1 of 1.3.\n\n(2) Of which non-APRA regulated\n\nThis is automatically calculated as the sum of Column 6 of 1.1, Column 4 of 1.2 and Column 2 of 1.3.\n\n(3) Of which non-standards loans\n\nThis is automatically calculated as the sum of Column 7 of 1.1 and Column 5 of 1.2.\n\nSection 2\n\n(1) Large exposures\n\nThis indicates the ranking of the five largest liability exposures by a number from 1 to 5.\n\n(2) Originator\n\nReport the name of the originator.\n\n(3) ACN / ABN\n\nWhere relevant, this column reports the Australian Company Number (ACN) of the originator reported in column 2. In cases where the originator doesn’t have an ACN but it does have an Australian Business Number (ABN) or an Australian Registered Body Number (ARBN), the ABN or ARBN should be reported. If the originator does not have an ACN, ABN, or ARBN the column should be left blank.\n\nInput the number without spaces.\n\n(4) Sum insured\n\nReport the total sum insured for the originator.\n\n(5) Open policy (%)\n\nOpen policy is a legal arrangement whereby a lender is given direct underwriting control for mortgage insurance policies without reference to the LMI, subject to the transaction meeting certain underwriting requirements. Report the percentage of insurance policies, by value, written under open policy","sortOrder":0}],"analysis":{"kimi_summary":{"_metrics":{"completionTokens":709},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"This is a straightforward replacement of Determination No. 30 of 2014 with an updated version. The scope remains tightly focused on data collection for prudential supervision of lenders mortgage insurers. No expansion beyond the original purpose of monitoring capital adequacy and concentration risk for LMIs."},"complexity_factors":["Multiple interconnected forms (GRF 116.1 through 116.5) with cross-referenced calculations","Extensive defined terms and references to external prudential standards (GPS 116, CPS 001, GRS 001)","Nested categorisations: standard/non-standard/commercial loans × ADI/non-APRA regulated × 100% cover/top cover/pool cover × multiple LVR bands × four age categories","Automated calculations with dependencies across forms (e.g., GRF 116.4 pulls data from 116.1, 116.2, 116.3)","Prescribed stress scenario requiring 3-year downturn allocation (25%/50%/25%)","Reinsurance adjustments and APRA-approved modifications creating conditional logic","Audit and assurance requirements with auditor certification for yearly statutory accounts","Transitional reporting provisions for overlapping old and new standards"],"plain_english_summary":"APRA’s new reporting standard requires lenders mortgage insurers to submit detailed data on their insurance risk and capital needs — including Probable Maximum Losses and concentration risk — so the regulator can assess resilience to a severe housing downturn. \n\nIt applies to authorised LMIs and takes effect 1 April 2025, strengthening oversight of insurer capital adequacy to protect the financial system."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"This Determination replaces and updates the existing reporting standard for LMIs but does not materially broaden the universe of entities required to report: it continues to apply to general insurers that are lenders mortgage insurers as defined in CPS 001. The changes are primarily modernisation and clarification (new forms, automated calculations, explicit audit assurance expectations and alignment with GPS 116 and GPS 310) and an updated effective date (reporting periods ending on or after 1 April 2025). While the reporting detail and audit expectations appear more prescriptive (raising compliance scope within the same population), the instrument does not expand the targeted subject‑matter beyond APRA’s stated prudential supervision purpose."},"complexity_factors":["Five separate reporting forms (GRF 116.1 to GRF 116.5) with inter‑linked calculations and auto‑derived totals","Extensive cross‑references to other instruments: CPS 001, GPS 116 (Attachment A), GPS 310, GRS 001 and the Insurance Act 1973","Multiple categorical breakdowns: LVR bands, coverage proportions, age/seasoning buckets, ADI vs non‑ADI, pool vs individual policies, standard vs non‑standard vs commercial loans","Automated look‑ups and formulae (seasoning, PD, LGD, PML, LMICRC) that require external input rules (Attachment A of GPS 116)","Quality control / audit requirement: annual Appointed Auditor review and at least a limited assurance engagement consistent with AUASB standards","APRA discretion points: ability to vary reporting frequency/content for particular insurers and to adjust LMICRC outcomes","Transition rules that require concurrent application of old standard for certain reporting periods","Authorisation and technical requirements: digital certificates acceptable to APRA and specific authorised signatories (PEO or CFO)","Numerous automated fields and derived items (risk of cascading errors if inputs are incorrect)","Large number of defined terms and interpretation notes across the Schedule and forms"],"plain_english_summary":"**What this instrument does (mechanically)\n\n- Replaces APRA's prior Reporting Standard for lenders mortgage insurers (LMIs) (the Determination revokes Determination No. 30 of 2014 and publishes Reporting Standard GRS 116.1). (Front page)\n- Creates five APRA reporting forms (GRF 116.1–GRF 116.5) and instructions that insurers who are LMIs must submit to APRA. (Objective / Schedule)\n- Specifies who must report: general insurers authorised under the Insurance Act 1973 that meet the LMI definition in Prudential Standard CPS 001 (CPS001). The standard applies for reporting periods ending on or after 1 April 2025. (Application and commencement)\n- Requires LMIs to provide the GRF 116.1 series for each reporting period (quarterly and annual reporting by default), via APRA's electronic method, and within the deadlines set out in GRS 001 (Reporting periods and due dates; Forms and method of submission). APRA can require different frequencies for particular insurers by written notice. (Reporting periods and due dates; Forms and method of submission; paragraph 7)\n- Specifies the exact data to be reported: detailed breakdowns of exposures by LVR (loan-to-valuation ratio) bands, coverage proportion (20–100%), loan ageing/seasoning buckets (<3; 3–<5; 5–<10; ≥10 years), pool-level weighted averages, PD (probability of default) and LGD (loss-given-default) factors as determined by Attachment A of Prudential Standard GPS 116 (GPS 116), total sum insured, and calculated Probable Maximum Loss (PML) for standard, non-standard and commercial loans; plus inwards reinsurance and the LMI Concentration Risk Charge (LMICRC) calculation. (Information required; Forms and attachments; Explanatory notes)\n- Automates a number of calculations in the forms (seasoning, PD/LGD look-ups from GPS 116, PML = sum insured × seasoning × PD × LGD, pool-level calculations, commercial loan PML = sum insured × 8%). The forms also compute totals and derive the inputs needed for the LMICRC calculation (including the 3‑year stress allocation 25%/50%/25%). (Instructions for specific items; GRF_116_1–GRF_116_4)\n- Sets quality-control and audit expectations: data must be produced by systems, processes and controls reviewed and tested by the insurer’s Appointed Auditor; at least a limited assurance engagement is required annually (consistent with AUASB standards and GPS 310 Audit and Related Matters). The insurer’s board and senior management are responsible for data authorisation. (Quality control)\n- Requires electronic authorisation: an officer or authorised agent must digitally sign submitted data using an APRA-acceptable digital certificate; submissions must be authorised by the Principal Executive Officer or Chief Financial Officer. (Authorisation)\n- Gives APRA discretion to vary reporting requirements for individual insurers and to approve adjustments to the LMICRC calculation if APRA considers the standard method inappropriate for a particular insurer. (Variations; GRF_116_4 instructions)\n- Contains transition rules so insurers still must finish any reports due under the old standard for reporting periods that ended before revocation but with reporting due on/after the revocation date. (Transition)\n\nWho is affected and why it matters\n\n- Primary effect: Australian lenders mortgage insurers (LMIs) that are general insurers. They must supply detailed exposures, reinsurance and calculated PML figures to APRA quarterly and annually (subject to APRA’s direction). (Application and commencement; Information required)\n- Secondary effects: insurers that provide reinsurance to LMIs (inwards reinsurance items are reported), auditors (who must perform specified assurance work), and ADIs / non‑ADI originators indirectly (their origination channel is reported). (GRF_116_5; Quality control)\n- Why it matters: APRA collects granular LMI exposure and PML data to supervise capital adequacy (assessing compliance with capital standards, and to derive the LMI Concentration Risk Charge used in prescribed capital calculations). The data underpins APRA’s prudential assessments of LMI resilience to concentrated mortgage losses. (Purpose; GRF_116_4)\n\nOfficial rationale (claimed purpose) and an evidence‑based test of trade‑offs\n\n- Claimed purpose: to provide APRA with the information needed for prudential supervision and to assess compliance with capital standards (Purpose; Authority). That is implemented by mandating the GRF 116.1 series and tying the PD/LGD/seasoning rules to GPS 116 Attachment A.\n\n- Costs and compliance burden: the instrument imposes recurring data-collection, validation, assurance and electronic-submission burdens on LMIs (Information required; Quality control; Authorisation). The forms require detailed categorisation (multiple LVR bands, coverage rates, age buckets, pools and per‑originator large exposures), which increases data processing and audit costs—especially for smaller LMIs or those whose systems are not structured to produce these tables.\n\n- Incentives and behaviour changes: reporting of exposures by origination channel (ADI vs non‑ADI) and detailed LVR/coverage buckets creates incentives for LMIs and originators to monitor those metrics closely; recurring reporting and auditor confirmation may incentivise stronger internal controls and conservative capital treatment where exposures concentrate. APRA’s discretion to vary reporting or to adjust LMICRC (Variations; GRF_116_4) creates an enforcement backstop but also regulatory uncertainty for firms that might expect individual adjustments.\n\n- Trade‑offs and opportunity cost: APRA gains more granular visibility for supervision at the cost of private-sector time and audit fees. The forms automate many calculations but still rely on insurers to compute weighted averages and to supply accurate inputs; mistakes in source data can propagate into calculated PML and LMICRC results.\n\n- Implementation risk and compliance complexity: reliance on external prudential standards (CPS001 and GPS 116 Attachment A) means that changes to those instruments or interpretation issues can materially affect how the forms are completed. The requirement for limited assurance under AUASB standards links reporting to external audit capacity (Quality control), which could create seasonal capacity constraints around quarter/annual deadlines.\n\n- Concentrated benefits and diffuse costs: APRA and its supervisors obtain concentrated informational benefits; costs are borne by all reporting LMIs (diffuse). Smaller market participants and reinsurers may face proportionally higher administrative costs. The forms also permit APRA to take insurer‑specific action (e.g., change frequency, approve LMICRC variations), which concentrates decision power with APRA (Variations; GRF_116_4).\n\nConcrete decision paths and who pays\n\n- Who pays: LMIs (insurers) bear the compliance, systems and audit costs required to prepare, test and submit the GRF 116.1 series; appointed auditors incur the assurance work required. Reinsurers may be indirectly affected where inwards reinsurance data is reported.\n- Who decides: APRA determines form layout and required calculations (this Determination), may vary reporting frequency or the content for particular insurers by notice, and may adjust the LMICRC for individual insurers if needed. Insurer boards and senior management decide internal policies and processes to generate validated data and appoint the Appointed Auditor. (Authority; Reporting periods and due dates; Quality control; Variations)\n\nKey cross‑references that matter operationally\n\n- The forms and some look‑ups explicitly depend on Attachment A of Prudential Standard GPS 116 (for seasoning, PD, LGD) and on GPS 310 for audit expectations. The reporting deadlines link to GRS 001. Those cross‑references mean practitioners must read the Reporting Standard alongside GPS 116, GPS 310 and CPS001. (Interpretation; Quality control; Purpose)\n\nSections to note for compliance teams\n\n- Application and commencement: who reports and effective date (reporting periods ending on/after 1 April 2025).\n- Information required / Forms and method of submission: exact obligation to provide GRF 116.1 series and how to submit.\n- Quality control and Authorisation: auditor review and digital-signature/authoriser requirements.\n- GRF_116_4 (LMI Concentration Risk Charge): shows how APRA expects PML allocated across a 3‑year stress and how reinsurance and allowable deductions feed into the LMICRC.\n- Transition: handling of reporting periods straddling the revocation of the old standard.\n\nWhat this does not (explicitly) change\n\n- The Determination sets reporting mechanics and data items; it does not itself change the PD/LGD/seasoning tables (those come from GPS 116 Attachment A) or the prudential capital calculation methodology beyond the reporting inputs (although APRA retains discretion to adjust LMICRC outcomes for a particular insurer). (GRF_116_4)\n\n"},"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-13-of-2025","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-13-of-2025/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-13-of-2025/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-13-of-2025/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-13-of-2025/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-13-of-2025/documents"}}