{"id":"F2023L00633","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 59 of 2023","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-59-of-2023","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":104336,"registerId":"commonwealth-F2023L00633-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"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 relating to a general insurer’s prescribed capital amount.\n\nIt includes associated specific instructions and must be read in conjunction with Reporting Standard GRS 001 Reporting Requirements (GRS 001), including the general instruction guide and Prudential Standard GPS 110 Capital Adequacy (GPS 110).\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 the capital standards.\n\nApplication and commencement\n\n3. This Reporting Standard applies to all general insurers authorised under the Insurance Act 1973 (insurers). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.\n\nInformation required\n\n4. An insurer must provide APRA with the information required by this Reporting Standard for each reporting period.\n\nMethod of submission\n\n5. 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\n(b) by a method notified by APRA prior to submission.\n\nReporting periods and due dates\n\n6. Subject to paragraph 7, an insurer must provide the information required by this Reporting Standard:\n\n(a) in respect of each quarter based on the financial year of the insurer; and\n\n(b) 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. 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\n7. 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.\n\n8. The information required by this Reporting Standard in respect of an insurer 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 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\n    9. APRA may, in writing, grant an insurer an extension of a due date in paragraph 8, 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, an insurer is nonetheless required to submit the information required no later than the due date.\n\nQuality control\n\n10. 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\n(a) 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\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 GPS 310 Audit and Related Matters.\n\n11. 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\n12. When an officer, or agent, of an insurer 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\n13. If the information required by this Reporting Standard is provided by an agent who submits the information on the insurer’s behalf, the insurer must:\n\n(a) obtain from the agent a copy of the completed information provided to APRA; and\n\n(b) retain the completed copy.\n\n14. 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\n(a) the Principal Executive Officer of the insurer; or\n\n(b) the Chief Financial Officer of the insurer.\n\nVariations\n\n15. APRA may, by written notice to the insurer, vary the reporting requirements of this Reporting Standard in relation to that insurer.\n\nTransition\n\n16. An insurer 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\n(b) 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\n17. In this Reporting Standard:\n\n(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard GPS 001 Definitions (GPS 001); and\n\n(b) the following definitions are applicable:\n\nAppointed 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. The Australian Reinsurance Pool Corporation is also an APRA-authorised reinsurer for the purposes of this definition;\n\ncapital standards means the prudential standards which relate to capital adequacy as defined in GPS 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 this Reporting Standard, 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 6(b) or, if applicable, paragraph 7.\n\n18. 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":"General instructions","sectionType":"part","heading":"General instructions","content":"Reporting Standard GRS 110.0\n\nPrescribed Capital Amount\n\n## General instructions\n\n### Reporting tables\n\nTables described in this reporting standard 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\n### Category of insurer\n\nThe different categories of insurer are defined in GPS 001.\n\n### Definitions\n\nTerms in bold italics are defined in this Definitions section of these instructions.\n\n### A\n\n| Adjustments to prescribed capital amount as approved by APRA | These are adjustments made to an insurer’s prescribed capital amount if APRA is of the view that the Standard Method for calculating 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 prescribed capital amount.Approved adjustments are to be reported separately in the Reporting Standard GRS 111.0 Adjustments and Exclusions highlighting the description of the adjustment given, transitional status and amount of adjustment applied. An increase in the risk charge is to be reported as a positive amount. |\n| ------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Aggregation benefit                                          | The aggregation benefit makes an explicit allowance for diversification between asset risk and the sum of insurance risk and insurance concentration risk in the calculation of the prescribed capital amount.This must be determined in accordance with GPS 110.                                                                                                                                                                                                                                                                                                                                                                                                     |\n| Asset Concentration Risk Charge                              | The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the reporting insurer’s capital base.This must be determined in accordance with Prudential Standard GPS 117 Capital Adequacy: Asset Concentration Risk Charge.                                                                                                                                |\n| Asset Risk Charge                                            | The Asset Risk Charge is the minimum amount of capital required to be held against asset risks. The Asset Risk Charge relates to the risk of adverse movements in the value of a reporting insurer’s capital base due to credit or market risks.This must be determined in accordance with Prudential Standard GPS 114 Capital Adequacy: Asset Risk Charge (GPS 114).                                                                                                                                                                                                                                                                                                 |\n| Asset Risk Charge - aggregated risk charge component         | A regulated institution must calculate the risk charge components, as defined in GPS 114, by considering the impact on the capital base of the regulated institution of a range of stresses. These risk charge components are then aggregated using the formula set out in GPS 114. The result of applying the formula is defined as the Asset Risk Charge - aggregated risk charge component.                                                                                                                                                                                                                                                                        |\n| Asset Risk Charge - impact of diversification                | The Asset Risk Charge - impact of diversification relates to the recognition of diversification benefits between the asset risk charge components as set out in GPS 114.This item must be calculated as the sum of the risk charge components less the Asset Risk Charge - aggregated risk charge component.                                                                                                                                                                                                                                                                                                                                                          |\n| Asset Risk Charge - tax benefit deduction                    | This represents the tax benefits deducted from the Asset Risk Charge - aggregated risk charge component as determined in accordance with GPS 114. It comprises the tax benefits resulting from the Asset Risk Charge stresses, reduced to allow for the reduction in Asset Risk Charge due to the aggregation formula.                                                                                                                                                                                                                                                                                                                                                |\n\nI\n\n| Insurance Concentration Risk Charge | The Insurance Concentration Risk Charge is the minimum amount of capital required to be held against insurance concentration risks. The Insurance Concentration Risk Charge relates to the risk of an adverse movement in the reporting insurer's capital base due to a single large loss or series of losses.This must be determined in accordance with Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.                                                                                                                                                                                     |\n| ----------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Insurance Risk Charge               | The Insurance Risk Charge is the minimum amount of capital required to be held against insurance risks determined in accordance with Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge (GPS 115). The Insurance Risk Charge relates to the risk that the value of net insurance liabilities determined in accordance with Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340) is insufficient to cover associated net claim payments and associated claim expenses as they fall due.This must be calculated as the sum of:Total OCL Insurance Risk Charge; andTotal PL Insurance Risk Charge. |\n\nL\n\n| Lenders mortgage insurer | This refers to whether the reporting insurer is a lenders mortgage insurer as defined in GPS 001. |\n| ------------------------ | ------------------------------------------------------------------------------------------------- |\n\nO\n\n| Operational Risk Charge                                                      | The Operational Risk Charge is the minimum amount of capital required to be held against operational risks. The Operational Risk Charge relates to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.This must be determined in accordance with Prudential Standard GPS 118 Capital Adequacy: Operational Risk Charge (GPS 118). |\n| ---------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Operational Risk Charge for inwards reinsurance business (ORCI)              | This is the Operational Risk Charge relating to the reporting insurer's inwards reinsurance business. This must be calculated using the formula in accordance with GPS 118.                                                                                                                                                                                                                        |\n| Operational Risk Charge for business that is not inwards reinsurance (ORCNI) | This is the Operational Risk Charge relating to business written directly by the reporting insurer. This must be calculated using the formula in accordance with GPS 118.                                                                                                                                                                                                                          |\n\nP\n\n| Prescribed capital amount | The prescribed capital amount must be determined in accordance with GPS 110.It is calculated as the sum of:Insurance Risk Charge;Insurance Concentration Risk Charge;Asset Risk Charge;Asset Concentration Risk Charge;Operational Risk Charge; andadjustments to prescribed capital amount as approved by APRA;less:aggregation benefit.Where the reporting insurer is a Category D or E insurer, the prescribed capital amount is subject to a minimum of $2 million. For all other reporting insurers, the prescribed capital amount is subject to a minimum of $5 million. |\n| ------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n\nR\n\n| Risk charge components | The risk charge components, have the same meaning as in, and must be calculated in accordance with, GPS 114. These are calculated by determining the fall in the capital base of the regulated institution in seven stress tests. |\n| ---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nT\n\n| Total OCL Insurance Risk Charge | The risk charge for outstanding claims risk relates to the risk that the value of net outstanding claims liabilities (OCL) determined in accordance with GPS 340 will be insufficient to cover associated net claim payments and any associated claim expenses as they fall due.This must be determined in accordance with GPS 115.                                                                                     |\n| ------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Total PL Insurance Risk Charge  | This is the Insurance Risk Charge in respect of premiums liability (PL) risk, which relates to the risk that the value of the net PL is greater than the value determined in accordance with GPS 340. It also relates to the risk that material net written premium, as defined in GPS 115, will be insufficient to fund the liabilities arising from that business.This must be determined in accordance with GPS 115. |","sortOrder":1},{"sectionNumber":"Reporting tables","sectionType":"division","heading":"Reporting tables","content":"### Reporting tables\n\nTables described in this reporting standard 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.","sortOrder":2},{"sectionNumber":"Category of insurer","sectionType":"division","heading":"Category of insurer","content":"### Category of insurer\n\nThe different categories of insurer are defined in GPS 001.","sortOrder":3},{"sectionNumber":"Definitions","sectionType":"division","heading":"Definitions","content":"### Definitions\n\nTerms in bold italics are defined in this Definitions section of these instructions.","sortOrder":4},{"sectionNumber":"A","sectionType":"division","heading":"A","content":"### A\n\n| Adjustments to prescribed capital amount as approved by APRA | These are adjustments made to an insurer’s prescribed capital amount if APRA is of the view that the Standard Method for calculating 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 prescribed capital amount.Approved adjustments are to be reported separately in the Reporting Standard GRS 111.0 Adjustments and Exclusions highlighting the description of the adjustment given, transitional status and amount of adjustment applied. An increase in the risk charge is to be reported as a positive amount. |\n| ------------------------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Aggregation benefit                                          | The aggregation benefit makes an explicit allowance for diversification between asset risk and the sum of insurance risk and insurance concentration risk in the calculation of the prescribed capital amount.This must be determined in accordance with GPS 110.                                                                                                                                                                                                                                                                                                                                                                                                     |\n| Asset Concentration Risk Charge                              | The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the reporting insurer’s capital base.This must be determined in accordance with Prudential Standard GPS 117 Capital Adequacy: Asset Concentration Risk Charge.                                                                                                                                |\n| Asset Risk Charge                                            | The Asset Risk Charge is the minimum amount of capital required to be held against asset risks. The Asset Risk Charge relates to the risk of adverse movements in the value of a reporting insurer’s capital base due to credit or market risks.This must be determined in accordance with Prudential Standard GPS 114 Capital Adequacy: Asset Risk Charge (GPS 114).                                                                                                                                                                                                                                                                                                 |\n| Asset Risk Charge - aggregated risk charge component         | A regulated institution must calculate the risk charge components, as defined in GPS 114, by considering the impact on the capital base of the regulated institution of a range of stresses. These risk charge components are then aggregated using the formula set out in GPS 114. The result of applying the formula is defined as the Asset Risk Charge - aggregated risk charge component.                                                                                                                                                                                                                                                                        |\n| Asset Risk Charge - impact of diversification                | The Asset Risk Charge - impact of diversification relates to the recognition of diversification benefits between the asset risk charge components as set out in GPS 114.This item must be calculated as the sum of the risk charge components less the Asset Risk Charge - aggregated risk charge component.                                                                                                                                                                                                                                                                                                                                                          |\n| Asset Risk Charge - tax benefit deduction                    | This represents the tax benefits deducted from the Asset Risk Charge - aggregated risk charge component as determined in accordance with GPS 114. It comprises the tax benefits resulting from the Asset Risk Charge stresses, reduced to allow for the reduction in Asset Risk Charge due to the aggregation formula.                                                                                                                                                                                                                                                                                                                                                |\n\nI\n\n| Insurance Concentration Risk Charge | The Insurance Concentration Risk Charge is the minimum amount of capital required to be held against insurance concentration risks. The Insurance Concentration Risk Charge relates to the risk of an adverse movement in the reporting insurer's capital base due to a single large loss or series of losses.This must be determined in accordance with Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.                                                                                                                                                                                     |\n| ----------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Insurance Risk Charge               | The Insurance Risk Charge is the minimum amount of capital required to be held against insurance risks determined in accordance with Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge (GPS 115). The Insurance Risk Charge relates to the risk that the value of net insurance liabilities determined in accordance with Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340) is insufficient to cover associated net claim payments and associated claim expenses as they fall due.This must be calculated as the sum of:Total OCL Insurance Risk Charge; andTotal PL Insurance Risk Charge. |\n\nL\n\n| Lenders mortgage insurer | This refers to whether the reporting insurer is a lenders mortgage insurer as defined in GPS 001. |\n| ------------------------ | ------------------------------------------------------------------------------------------------- |\n\nO\n\n| Operational Risk Charge                                                      | The Operational Risk Charge is the minimum amount of capital required to be held against operational risks. The Operational Risk Charge relates to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.This must be determined in accordance with Prudential Standard GPS 118 Capital Adequacy: Operational Risk Charge (GPS 118). |\n| ---------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Operational Risk Charge for inwards reinsurance business (ORCI)              | This is the Operational Risk Charge relating to the reporting insurer's inwards reinsurance business. This must be calculated using the formula in accordance with GPS 118.                                                                                                                                                                                                                        |\n| Operational Risk Charge for business that is not inwards reinsurance (ORCNI) | This is the Operational Risk Charge relating to business written directly by the reporting insurer. This must be calculated using the formula in accordance with GPS 118.                                                                                                                                                                                                                          |\n\nP\n\n| Prescribed capital amount | The prescribed capital amount must be determined in accordance with GPS 110.It is calculated as the sum of:Insurance Risk Charge;Insurance Concentration Risk Charge;Asset Risk Charge;Asset Concentration Risk Charge;Operational Risk Charge; andadjustments to prescribed capital amount as approved by APRA;less:aggregation benefit.Where the reporting insurer is a Category D or E insurer, the prescribed capital amount is subject to a minimum of $2 million. For all other reporting insurers, the prescribed capital amount is subject to a minimum of $5 million. |\n| ------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |\n\nR\n\n| Risk charge components | The risk charge components, have the same meaning as in, and must be calculated in accordance with, GPS 114. These are calculated by determining the fall in the capital base of the regulated institution in seven stress tests. |\n| ---------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\nT\n\n| Total OCL Insurance Risk Charge | The risk charge for outstanding claims risk relates to the risk that the value of net outstanding claims liabilities (OCL) determined in accordance with GPS 340 will be insufficient to cover associated net claim payments and any associated claim expenses as they fall due.This must be determined in accordance with GPS 115.                                                                                     |\n| ------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n| Total PL Insurance Risk Charge  | This is the Insurance Risk Charge in respect of premiums liability (PL) risk, which relates to the risk that the value of the net PL is greater than the value determined in accordance with GPS 340. It also relates to the risk that material net written premium, as defined in GPS 115, will be insufficient to fund the liabilities arising from that business.This must be determined in accordance with GPS 115. |","sortOrder":5},{"sectionNumber":"Specific Instructions","sectionType":"part","heading":"Specific Instructions","content":"## Specific Instructions\n\nTable 1: Prescribed Capital Amount\n\nReporting basis\n\nReport information related to the licensed insurer’s prescribed capital amount.\n\nUnits of measurement\n\nReport the dollar values in this table in whole Australian dollars.\n\nCategory of Insurer\n\nReport the category of the insurer as defined in GPS 001.\n\nLenders Mortgage Insurer\n\nReport ‘Yes’ if the reporting insurer is a lenders mortgage insurer, otherwise report ‘No’.\n\n| Column 1 | Report the value for each of the items listed below. |\n| -------- | ---------------------------------------------------- |\n\n1.  Insurance Risk Charge\n\n| Item 1   | Insurance Risk Charge is a derived item and is calculated as the sum of items 1.1 and 1.2. |\n| -------- | ------------------------------------------------------------------------------------------ |\n| Item 1.1 | Report the Total OCL Insurance Risk Charge.                                                |\n| Item 1.2 | Report the Total PL Insurance Risk Charge.                                                 |\n\n2. Insurance Concentration Risk Charge\n\n| Item 2 | Report the Insurance Concentration Risk Charge. |\n| ------ | ----------------------------------------------- |\n\n3. Asset Risk Charge\n\n| Item 3   | Report the Asset Risk Charge.                                    |\n| -------- | ---------------------------------------------------------------- |\n| Item 3.1 | Report the Asset Risk Charge - aggregated risk charge component. |\n| Item 3.2 | Report the Asset Risk Charge - impact of diversification.        |\n| Item 3.3 | Report the Asset Risk Charge - tax benefit deduction.            |\n\n4. Asset Concentration Risk Charge\n\n| Item 4 | Report the Asset Concentration Risk Charge. |\n| ------ | ------------------------------------------- |\n\n5. Operational Risk Charge\n\n| Item 5   | Report the Operational Risk Charge.                                                      |\n| -------- | ---------------------------------------------------------------------------------------- |\n| Item 5.1 | Report the Operational Risk Charge for inwards reinsurance business (ORCI).              |\n| Item 5.2 | Report the Operational Risk Charge for business that is not inwards reinsurance (ORCNI). |\n\n6. Aggregation benefit\n\n| Item 6 | Report the aggregation benefit.An aggregation benefit which would result in a decrease to the prescribed capital amount should be reported as a positive value. |\n| ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------- |\n\n7. Adjustments to prescribed capital amount as approved by APRA\n\n| Item 7 | Report the adjustments to prescribed capital amount as approved by APRA.Report increases in the prescribed capital amount as positive values. |\n| ------ | --------------------------------------------------------------------------------------------------------------------------------------------- |\n\n8. Prescribed capital amount\n\n| Item 8 | Prescribed capital amount is a derived item and is calculated as the sum of:item 1;item 2;item 3;item 4;item 5; anditem 7less:item 6.This is subject to a minimum of $2 million for a Category D or E insurer, and $5 million for all other reporting insurers. |\n| ------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |","sortOrder":6}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"This Reporting Standard primarily consolidates and prescribes the data fields, timing, authorisation and assurance arrangements for reporting a general insurer's prescribed capital amount and relies on existing prudential standards for the detailed calculation rules. It does not materially expand the subject matter beyond its core purpose (standardising reporting of the prescribed capital amount and its components). The instrument adds operational requirements (electronic submission, digital signatures, explicit auditor limited-assurance requirement, and APRA’s explicit variation powers and transitional rules), but those are procedural refinements rather than a substantive broadening of scope."},"complexity_factors":["Extensive cross-references to other prudential standards and instruments (GPS 110, GPS 114, GPS 115, GPS 116, GPS 117, GPS 118, GPS 340, GRS 001 and GPS 001) — at least 9 external anchors (Objective and Definitions).","Detailed Interpretation section listing multiple defined terms and notes (paras 17–18) — at least a dozen key definitions relevant to calculations and roles.","Reporting table with derived items and subcomponents (Table 1: Items 1–8 with subitems such as 1.1, 1.2, 3.1–3.3, 5.1–5.2) increases calculation and mapping complexity.","Conditional rules and minima (prescribed capital amount subject to different minimums for Category D/E versus other insurers) that require applying insurer-specific logic (Specific Instructions: Item 8).","Multiple procedural layers: electronic submission and digital signature requirements, agent submission and retention rules, authorisation by PEO or CFO, and auditor assurance obligations (paras 5, 12–14, 10–11).","Regulatory discretion and variation powers (APRA may change reporting periods or vary requirements per insurer and may approve adjustments) add asymmetric application and case-by-case complexity (paras 7, 9, 15; Definitions: Adjustments).","Transitional arrangements that require some insurers to report under the old standard for particular periods — potential need for parallel processes (para 16).","Audit and assurance standards interaction (the Appointed Auditor must undertake limited assurance engagement consistent with external auditing guidance and GPS 310) creates dependency on non-statutory professional guides (para 10).","Repetition and duplication in the document (multiple repeated definition blocks and instruction headings) which increases reading and implementation overhead for compliance teams."],"plain_english_summary":"**What this instrument does (mechanics)\n\n- Sets mandatory reporting rules for how a general insurer (an insurer authorised under the Insurance Act 1973) must report its \"prescribed capital amount\" to the Australian Prudential Regulation Authority (APRA). (paras 1–4)\n- Requires insurers to submit the data electronically (or by another APRA-notified method), quarterly and annually, from reporting periods ending on or after 1 July 2023. Quarterly reports are due within 20 business days of period end; annual reports within three months. APRA can change these frequencies or timeframes for particular insurers by written notice and can grant extensions. (paras 3, 5–9)\n- Specifies the data fields to be reported: the components that make up the prescribed capital amount (insurance risk charge—including outstanding claims and premium liability components; insurance concentration risk charge; asset risk charge and its subcomponents; asset concentration charge; operational risk charges; aggregation benefit; and any APRA-approved adjustments). Some items are \"derived\" (calculated from other reported items) and the final prescribed capital amount is subject to statutory minima depending on insurer category. (Attachment: Definitions and Table 1; Specific Instructions)\n- Requires that the submitted information be produced by systems, processes and controls that the insurer's Appointed Auditor has reviewed and tested at least annually (a limited assurance engagement consistent with applicable auditing guidance). The insurer’s board and senior management must maintain internal review and authorisation policies. (paras 10–11)\n- Sets authorisation and record-keeping rules for submissions: electronic submissions must be digitally signed with an APRA-acceptable certificate; agents submitting on an insurer's behalf must provide the insurer a copy of what was lodged; only the Principal Executive Officer or Chief Financial Officer may authorise the submitter. (paras 12–14)\n- Confirms APRA’s power to vary reporting requirements for particular insurers by written notice and provides transitional arrangements for reporting obligations that straddle revocation of the prior reporting standard. (paras 15–16)\n- Cross-references multiple prudential standards for the detailed methods used to calculate the component risk charges (notably GPS 110, GPS 114–118 and GPS 115, and GPS 340 for insurance liabilities) and to the general reporting framework in GRS 001. The Reporting Standard therefore sets the reporting format and governance requirements but relies on other prudential instruments for the detailed calculation rules. (Objective, Attachment references)\n\nWhy APRA says it matters\n\n- APRA uses the reported information to supervise insurers and to assess compliance with capital adequacy requirements (paras 2). In other words, the data feed APRA’s prudential oversight and its judgment about whether insurers hold enough capital against different risks.\n\nWho this affects and who does what\n\n- Affected parties: all general insurers authorised under the Insurance Act (para 3). Reporting obligations fall on the insurer; calculations are performed by the insurer according to the referenced prudential standards; the Appointed Auditor must review and perform assurance work; senior executives (PEO or CFO) must authorise submitters; APRA can demand more or less frequent reporting or different content for a particular firm. (paras 3, 10–14, 7, 15)\n\nHow this changes behaviour and who pays\n\n- Insurers must maintain or upgrade data, calculation and reporting systems to produce the standardised components of the prescribed capital amount and to meet the auditor assurance requirement. They therefore face ongoing operating costs: IT, model/calculation work, auditor fees, and internal control work. These costs are borne by insurers (paras 4, 10–11, Specific Instructions).\n- APRA retains discretion to require more frequent reporting or to vary requirements for particular insurers, which can increase compliance burden for those firms (para 7, para 15).\n- Because APRA also approves any adjustments to the prescribed capital amount (and those adjustments must be separately reported), insurers retain an incentive to follow the Standard Method; where they disagree with outcomes they can seek APRA’s approval for adjustments but must disclose them (Definitions; Item 7). This creates an administrative route for tailored capital treatment but also concentrates decision authority with APRA.\n\nTrade-offs, implementation risks and compliance burden (what to watch for)\n\n- Reliance on other prudential instruments for calculation rules: the Reporting Standard fixes format, timing and governance but depends heavily on GPS 110, GPS 114–118, GPS 115 and GPS 340 for how each charge is calculated. That increases complexity and creates risk if those standards change or are interpreted differently by insurers and by APRA. (Objective and multiple cross-references)\n- Audit and assurance requirement: the Appointed Auditor must perform review/testing at least annually and undertake a limited assurance engagement. That raises audit costs and requires insurers to maintain auditable systems and documentation. (para 10)\n- APRA discretion: APRA can vary frequency, change requirements for a particular insurer, and approve adjustments that alter the capital amount—power that concentrates judgment in the regulator and can produce asymmetry across firms. (paras 7, 15; Definitions: Adjustments)\n- Administrative overheads: quarterly and annual submissions, digital signing, agent-handling and record retention rules increase operational workload. Smaller insurers may face relatively larger compliance costs, and minimum prescribed-capital floors (Category D/E: $2m; others: $5m) can affect capital management choices, particularly for small or specialist insurers. (Specific Instructions: Item 8; Definitions: Prescribed capital amount)\n- Timing and transition risk: transitional rules require some insurers to report under the old standard for periods that ended before 1 July 2023 but were due after revocation; firms must therefore run parallel processes for a short period. (para 16)\n\nConcrete incentives and likely effects on market behaviour\n\n- Encourages homogenisation of capital reporting across insurers (same fields and format) — helpful for APRA comparability but raises compliance costs for firms that must align their models and data to the standard fields. (Reporting tables; Specific Instructions)\n- Gives APRA a mechanism to require more granular or frequent reporting of capital-related metrics from firms it views as higher risk, which can lead those firms to devote more resources to capital modelling and monitoring. (paras 7, 15)\n- Provides a predictable pathway for APRA-approved adjustments to capital requirements (they must be reported separately), so there is a formal administrative channel for exceptions while preserving APRA oversight. (Definitions: Adjustments; Item 7)\n\nKey references in the instrument: see paras 1–4 (purpose and scope); paras 5–9 (submission method, frequency, deadlines and APRA variation powers); paras 10–14 (audit, internal control and authorisation); para 15 (APRA may vary requirements); para 16 (transition); Interpretation and Specific Instructions / Table 1 (what to report and how calculated)."},"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"This determination appears consistent with the original intent of the Financial Sector (Collection of Data) Act 2001—namely, to enable APRA to collect prudential data from regulated entities. The scope remains tightly focused on capital adequacy reporting for general insurers, without significant expansion into unrelated areas."},"complexity_factors":["Heavy cross-referencing to external prudential standards (GPS 001, GPS 110, GPS 114-118, GPS 340, GRS 001) requiring readers to consult multiple documents simultaneously","Nested calculation methodology where the final 'prescribed capital amount' depends on summing and subtracting multiple derived items (Items 1-7 minus Item 6), each with their own sub-components","Conditional minimum capital thresholds ($2m vs $5m) based on insurer categorisation (Category D/E vs others) defined in a separate standard (GPS 001)","Dual reporting timelines (quarterly vs annual) with different due dates and audit requirements, plus discretionary power for APRA to modify these","Technical financial terminology requiring domain knowledge (aggregation benefits, risk charge components, stress testing, limited assurance engagements)","Transitional provisions requiring parallel compliance with revoked 'old reporting standard' for specific historical reporting periods"],"plain_english_summary":"This APRA reporting standard requires Australia’s general insurers (including foreign branches) to calculate and submit a quarterly and annual “prescribed capital amount” — a minimum-capital dollar figure built from insurance, asset, operational and concentration risk charges (net of diversification). Reports must be digitally signed, audited and fed into statutory accounts, with lower minimums for smaller insurer categories. The data lets APRA monitor insurers’ solvency and enforce prudential capital standards."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-59-of-2023","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-59-of-2023/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-59-of-2023/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-59-of-2023/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-59-of-2023/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-59-of-2023/documents"}}