{"id":"F2006L04191","name":"Financial Sector (Collection of Data) (reporting standard) determination No. 90 of 2006 - Reporting Standard GRS 440.0 (2007) Claims Development Tables","slug":"financial-sector-collection-of-data-reporting-standard-determination-no-90-of-2006-reporting-standar","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":61162,"registerId":"commonwealth-F2006L04191-current","compilationNumber":null,"startDate":"2026-04-02","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Schedule","sectionType":"part","heading":"Schedule","content":"#   \nSchedule\n\nReporting Standard GRS 440.0 (2007) Claims Development Tables comprises 43 pages commencing on the next page.","sortOrder":0},{"sectionNumber":"Reporting Standard GRS 440.0 (2007)","sectionType":"part","heading":"Reporting Standard GRS 440.0 (2007)","content":"## Reporting Standard GRS 440.0 (2007)","sortOrder":1},{"sectionNumber":"Claims Development Tables","sectionType":"part","heading":"Claims Development Tables","content":"# Claims Development Tables\n\n### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers), including foreign general insurers (foreign insurers) operating in Australia through branch operations, to report to APRA, generally on an annual basis, information associated with the development of claims liabilities.\n\nThis reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with Form GRF 440.0 Claims Development Table (Form GRF 440.0) and the instructions to that form (which are attached and form part of this reporting standard).\n\n# Purpose\n\n1.  Data collected in Form GRF 440.0 is used by APRA for the purpose of prudential supervision of insurers.\n\n# Application and commencement\n\n2. This reporting standard applies to all insurers on and from 1 January 2007.\n\n# Information required\n\n3. An insurer must provide APRA with the information required by Form GRF 440.0 for each reporting period.\n\n# Forms and method of submission\n\n4. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by manually completing Form GRF 440.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.\n\nWhere the information is submitted by means of an agent to whom the insurer has outsourced the function of providing the information on the insurer’s behalf, the agent may only provide the information in accordance with subparagraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under subparagraph 4(a).\n\nNote: the Direct to APRA application software and paper forms may be obtained from APRA.\n\n# Reporting periods and due dates\n\n5. Subject to paragraph 6, an insurer must provide the information required by this reporting standard in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.\n\nNote: APRA proposes to determine exemptions, under section 7 of the Insurance Act 1973 (Insurance Act), from the obligations under Part IV Division 4 of the Insurance Act in respect of the auditing of information provided under this reporting standard.\n\n6. APRA may, by notice in writing, change the reporting periods, or specified reporting periods for a particular insurer to require it to provide the information:\n\n(a) more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or\n\n(b) less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by paragraph 5).\n\n7. The information required by paragraph 3 of this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.\n\n8. APRA may grant a general insurer an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.\n\n# Authorisation\n\n9. The information provided by an insurer under this reporting standard must be subject to 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\n10. If the officer of an insurer provides the information required by this reporting standard:\n\n(a) under subparagraph 4(a), then the officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers of the insurer who have authority from the insurer to transmit data to APRA); or\n\n(b) under subparagraph 4(b), the completed form must be signed in accordance with paragraph 12.\n\n11. If an insurer provides the information required by this reporting standard through an agent under either subparagraph 4(a) or (b), the agent will not be required to sign or authorise the information. However, the insurer must:\n\n(a) obtain from the agent a paper copy of the completed form as provided to APRA (whether it was provided under subparagraph 4(a) or (b)); and\n\n(b) cause the paper copy to be signed in accordance with paragraph 12; and\n\n(c) lodge the signed paper copy with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date (unless APRA, in writing, waives the requirement to lodge the signed paper copy with APRA by varying this reporting standard in relation to the insurer).\n\nNote: APRA may, for example, determine to waive the requirement under subparagraph 11(c) where an insurer has undertaken to retain the signed copy of the completed form for an agreed period of time.\n\n12. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:\n\n(a) the Principal Executive Officer of the insurer; or\n\n(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).\n\n# Minor alterations to forms and instructions\n\n13. APRA may make minor variations to:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n> 14. If APRA makes such a variation it must notify general insurers in writing.\n\n> Transition\n\n> 15. An insurer must report in relation to a reporting period ending prior to 1 January 2007 in accordance with the reporting standard that this reporting standard replaced.\n\nInterpretation\n\n16. In this reporting standard:\n\napproved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;\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\nInsurance Act means the Insurance Act 1973;\n\ninsurer means a general insurer within the meaning 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\nPrincipal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;\n\n# reporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.\n\n17. A reference to a prudential standard means the prudential standard, made under section 32 of the Insurance Act, mentioned in the reference, as amended from time to time. If the prudential standard has been revoked and replaced, the reference shall be taken to be to the prudential standard that has replaced it.","sortOrder":2},{"sectionNumber":"Objective of this reporting standard","sectionType":"division","heading":"Objective of this reporting standard","content":"### Objective of this reporting standard\n\nThis reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers), including foreign general insurers (foreign insurers) operating in Australia through branch operations, to report to APRA, generally on an annual basis, information associated with the development of claims liabilities.\n\nThis reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with Form GRF 440.0 Claims Development Table (Form GRF 440.0) and the instructions to that form (which are attached and form part of this reporting standard).","sortOrder":3},{"sectionNumber":"Purpose","sectionType":"part","heading":"Purpose","content":"# Purpose\n\n1.  Data collected in Form GRF 440.0 is used by APRA for the purpose of prudential supervision of insurers.","sortOrder":4},{"sectionNumber":"Application and commencement","sectionType":"part","heading":"Application and commencement","content":"# Application and commencement\n\n2. This reporting standard applies to all insurers on and from 1 January 2007.","sortOrder":5},{"sectionNumber":"Information required","sectionType":"part","heading":"Information required","content":"# Information required\n\n3. An insurer must provide APRA with the information required by Form GRF 440.0 for each reporting period.","sortOrder":6},{"sectionNumber":"Forms and method of submission","sectionType":"part","heading":"Forms and method of submission","content":"# Forms and method of submission\n\n4. The information required by this reporting standard must be given to APRA either:\n\n(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or\n\n(b) by manually completing Form GRF 440.0 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.\n\nWhere the information is submitted by means of an agent to whom the insurer has outsourced the function of providing the information on the insurer’s behalf, the agent may only provide the information in accordance with subparagraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under subparagraph 4(a).\n\nNote: the Direct to APRA application software and paper forms may be obtained from APRA.","sortOrder":7},{"sectionNumber":"Reporting periods and due dates","sectionType":"part","heading":"Reporting periods and due dates","content":"# Reporting periods and due dates\n\n5. Subject to paragraph 6, an insurer must provide the information required by this reporting standard in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.\n\nNote: APRA proposes to determine exemptions, under section 7 of the Insurance Act 1973 (Insurance Act), from the obligations under Part IV Division 4 of the Insurance Act in respect of the auditing of information provided under this reporting standard.\n\n6. APRA may, by notice in writing, change the reporting periods, or specified reporting periods for a particular insurer to require it to provide the information:\n\n(a) more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or\n\n(b) less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by paragraph 5).\n\n7. The information required by paragraph 3 of this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.\n\n8. APRA may grant a general insurer an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.","sortOrder":8},{"sectionNumber":"Authorisation","sectionType":"part","heading":"Authorisation","content":"# Authorisation\n\n9. The information provided by an insurer under this reporting standard must be subject to 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\n10. If the officer of an insurer provides the information required by this reporting standard:\n\n(a) under subparagraph 4(a), then the officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers of the insurer who have authority from the insurer to transmit data to APRA); or\n\n(b) under subparagraph 4(b), the completed form must be signed in accordance with paragraph 12.\n\n11. If an insurer provides the information required by this reporting standard through an agent under either subparagraph 4(a) or (b), the agent will not be required to sign or authorise the information. However, the insurer must:\n\n(a) obtain from the agent a paper copy of the completed form as provided to APRA (whether it was provided under subparagraph 4(a) or (b)); and\n\n(b) cause the paper copy to be signed in accordance with paragraph 12; and\n\n(c) lodge the signed paper copy with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date (unless APRA, in writing, waives the requirement to lodge the signed paper copy with APRA by varying this reporting standard in relation to the insurer).\n\nNote: APRA may, for example, determine to waive the requirement under subparagraph 11(c) where an insurer has undertaken to retain the signed copy of the completed form for an agreed period of time.\n\n12. If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:\n\n(a) the Principal Executive Officer of the insurer; or\n\n(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).","sortOrder":9},{"sectionNumber":"Minor alterations to forms and instructi","sectionType":"part","heading":"Minor alterations to forms and instructions","content":"# Minor alterations to forms and instructions\n\n13. APRA may make minor variations to:\n\n> (a) a form that is part of this reporting standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or\n\n> (b) the instructions, to clarify their application to the form\n\n> without changing any substantive requirement in the form or instructions.\n\n> 14. If APRA makes such a variation it must notify general insurers in writing.\n\n> Transition\n\n> 15. An insurer must report in relation to a reporting period ending prior to 1 January 2007 in accordance with the reporting standard that this reporting standard replaced.\n\nInterpretation\n\n16. In this reporting standard:\n\napproved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;\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\nInsurance Act means the Insurance Act 1973;\n\ninsurer means a general insurer within the meaning 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\nPrincipal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;","sortOrder":10},{"sectionNumber":"reporting period means a period mentione","sectionType":"part","heading":"reporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.","content":"# reporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.\n\n17. A reference to a prudential standard means the prudential standard, made under section 32 of the Insurance Act, mentioned in the reference, as amended from time to time. If the prudential standard has been revoked and replaced, the reference shall be taken to be to the prudential standard that has replaced it.","sortOrder":11},{"sectionNumber":"Reporting Form GRF 440.0","sectionType":"part","heading":"Reporting Form GRF 440.0","content":"## Reporting Form GRF 440.0\n\n## Claims Development Table\n\n### Instruction Guide\n\n### Introduction\n\nThe purpose of this form is to capture information on the claims development profile of individual insurance companies.\n\n## This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.\n\nInsurers writing direct insurance business must complete this form based on accident years.\n\nInsurers writing reinsurance business must complete this form based on underwriting years.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nThe general requirements of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  Foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.\n\nTransactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’. However, those foreign currency derivatives that are not within the scope of AASB 139 ‘Financial Instruments: Recognition and Measurement’ (eg some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nFor APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post acquisition changes in equity are required to be translated on the date of the movement.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n\n-   Translation of financial reports should otherwise follow the requirements in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 440.0 Claims Development Tables.\n\n###   \nSpecific instructions\n\nGeneral insurers that write direct insurance business must complete this form on an accident year basis while general insurers that write reinsurance business must complete this form on an underwriting year basis. These terms are explained below.\n\nAccident Year\n\nThis refers to the financial year that the losses/claims associated with individual policies are incurred. The form is to be completed for each of the following years:\n\n-   current accident year;\n-   accident year, 1 year previous;\n-   accident year, 2 years previous;\n-   accident year, 3 years previous;\n-   accident year, 4 years previous;\n-   accident year, 5 years previous;\n-   accident year, 6 years previous;\n-   accident year, 7 years previous;\n-   accident year, 8 years previous;\n-   accident year, 9 years previous;\n-   accident year, 10 years previous; and\n-   accident year, more than 10 years previous.\n\nUnderwriting Year\n\nUnderwriting year refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 January 2005 to 31 December 2005.\n\n-   current underwriting year;\n-   underwriting year, 1 year previous;\n-   underwriting year, 2 years previous;\n-   underwriting year, 3 years previous;\n-   underwriting year, 4 years previous;\n-   underwriting year, 5 years previous;\n-   underwriting year, 6 years previous;\n-   underwriting year, 7 years previous;\n-   underwriting year, 8 years previous;\n-   underwriting year, 9 years previous;\n-   underwriting year, 10 years previous; and\n-   underwriting year, more than 10 years previous.\n\nEach of the years in this form are complete years reported on a financial year to date basis as at the last business day of the financial year of the insurer. No adjustments are required to be made to prior year reported information.\n\nWhere possible insurers are requested to complete the entire series of years.\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of business for companies that are not specialist reinsurers are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n  \n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\n##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident (which provides stated benefits where the insured is killed or suffers loss of specific parts of the body or is prevented from carrying out the insured’s normal occupation. In addition, regular benefits may be paid over a short period of time (typically less than 3 years), noting that continuous disability policies are now considered to be Life Insurance Policies and should not be provided by General Insurance companies).\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   All guarantees (e.g. fidelity Guarantee)\n-   Trade Credit;\n-   Extended Warranty (includes insurance by a third party for a period in excess of the manufacturer's or seller’s normal warranty;\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n  \n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split: This line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately split out all the classes of reinsurance businesses.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, the contract must be allocated using an appropriate method, including the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that underwrites inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\nThe following fields are to be completed on a cumulative basis:\n\n-   Gross Claims Paid\n-   Reinsurance and Other Recoveries Received\n\nThe following fields are NOT to be completed on a cumulative basis:\n\n-   Premium Earned\n-   Number of Claims\n-   Reinsurance Recoveries Receivable\n-   Other Recoveries Receivable\n-   Case Estimates\n\n(1) Premium Earned\n\nPremium earned is to be reported gross of reinsurance expense. Premium earned is to be reported in this form in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. recognised on an earned and unearned basis).\n\nThe amount reported for ‘Current Accident/Underwriting Year’ will then be the same reported for the ‘Accident/Underwriting Year – 1 Year Previous’ in the following financial year. For example:\n\n| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year – 2 Years Previous |\n| -------------------- | ---------------------------------- | -------------------------------------------- | --------------------------------------------- |\n| 31 December 2001     | 4,000                              | 2,000                                        |                                               |\n| 31 December 2002     | 5,000                              | 4,000                                        | 2,000                                         |\n\nPremium revenue is to take into account the following:\n\n-   Do not include amounts collected on behalf of third parties i.e. government stamp duty and taxes;\n-   Levies charged to customers are to be included such as fire service levies;\n-   Deduct returned premiums and rebates;\n-   Premiums are to be brought to account from the attachment date;\n-   For installment premium policies, the amount of the annualised premium is to be reported; and\n-   Premium revenue must be gross of reinsurance expense.\n\n(2) Number of Claims\n\nReport the total number of claims open for each class of business (i.e. not just new claims) as at the end of the reporting period for each accident/underwriting year.\n\nDo not include in this figure the number of claims recorded in relation to Incurred but not reported (IBNR) claims and do not include any claims that have been paid and closed.\n\nThe outstanding value of the number of open claims in this column should be recorded as the case estimate in (7).\n\nNote: this number should be reported in whole numbers of claims, not in thousands.\n\nThis column is not applicable for business written under proportional treaties as this information is generally not known.\n\n(3) Gross Claims Paid\n\nReport the amount of gross claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not adjust for reinsurance recoveries received.\n\n(4) Reinsurance and Other Recoveries Received\n\nReport the amount of reinsurance and other recoveries received on claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not include reinsurance and other recoveries recognised on an accrual basis.\n\n(5) Reinsurance Recoveries Receivable\n\nReport the amount of reinsurance recoveries that are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year. Report the undiscounted amount in accordance with AASB 1023 ‘General Insurance Contracts’.\n\n(6) Other recoveries receivable\n\nReport the amount of recoveries receivable other than recoveries from reinsurers (e.g. subrogation, salvage) as at the end of the development year for the specified accident/underwriting year. These are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year and must be undiscounted.\n\n(7) Case Estimate\n\nThe Case Estimate is to be disclosed by type of business (direct business and inwards reinsurance business). This relates to the Outstanding Claims Liability as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, the outstanding claims liability must be:\n\n-   The amount is the balance outstanding at the end of the year.\n-   Undiscounted;\n-   Gross of reinsurance recoveries;\n-   Based on ‘Case Estimate’ only, do not include a risk margin; and\n-   Do not include estimates of IBNR claims (Incurred but not reported).","sortOrder":12},{"sectionNumber":"Claims Development Table","sectionType":"part","heading":"Claims Development Table","content":"## Reporting Form GRF 440.0\n\n## Claims Development Table\n\n### Instruction Guide\n\n### Introduction\n\nThe purpose of this form is to capture information on the claims development profile of individual insurance companies.\n\n## This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.\n\nInsurers writing direct insurance business must complete this form based on accident years.\n\nInsurers writing reinsurance business must complete this form based on underwriting years.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nThe general requirements of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  Foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.\n\nTransactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’. However, those foreign currency derivatives that are not within the scope of AASB 139 ‘Financial Instruments: Recognition and Measurement’ (eg some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nFor APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post acquisition changes in equity are required to be translated on the date of the movement.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n\n-   Translation of financial reports should otherwise follow the requirements in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 440.0 Claims Development Tables.\n\n###   \nSpecific instructions\n\nGeneral insurers that write direct insurance business must complete this form on an accident year basis while general insurers that write reinsurance business must complete this form on an underwriting year basis. These terms are explained below.\n\nAccident Year\n\nThis refers to the financial year that the losses/claims associated with individual policies are incurred. The form is to be completed for each of the following years:\n\n-   current accident year;\n-   accident year, 1 year previous;\n-   accident year, 2 years previous;\n-   accident year, 3 years previous;\n-   accident year, 4 years previous;\n-   accident year, 5 years previous;\n-   accident year, 6 years previous;\n-   accident year, 7 years previous;\n-   accident year, 8 years previous;\n-   accident year, 9 years previous;\n-   accident year, 10 years previous; and\n-   accident year, more than 10 years previous.\n\nUnderwriting Year\n\nUnderwriting year refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 January 2005 to 31 December 2005.\n\n-   current underwriting year;\n-   underwriting year, 1 year previous;\n-   underwriting year, 2 years previous;\n-   underwriting year, 3 years previous;\n-   underwriting year, 4 years previous;\n-   underwriting year, 5 years previous;\n-   underwriting year, 6 years previous;\n-   underwriting year, 7 years previous;\n-   underwriting year, 8 years previous;\n-   underwriting year, 9 years previous;\n-   underwriting year, 10 years previous; and\n-   underwriting year, more than 10 years previous.\n\nEach of the years in this form are complete years reported on a financial year to date basis as at the last business day of the financial year of the insurer. No adjustments are required to be made to prior year reported information.\n\nWhere possible insurers are requested to complete the entire series of years.\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of business for companies that are not specialist reinsurers are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n  \n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\n##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident (which provides stated benefits where the insured is killed or suffers loss of specific parts of the body or is prevented from carrying out the insured’s normal occupation. In addition, regular benefits may be paid over a short period of time (typically less than 3 years), noting that continuous disability policies are now considered to be Life Insurance Policies and should not be provided by General Insurance companies).\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   All guarantees (e.g. fidelity Guarantee)\n-   Trade Credit;\n-   Extended Warranty (includes insurance by a third party for a period in excess of the manufacturer's or seller’s normal warranty;\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n  \n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split: This line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately split out all the classes of reinsurance businesses.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, the contract must be allocated using an appropriate method, including the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that underwrites inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\nThe following fields are to be completed on a cumulative basis:\n\n-   Gross Claims Paid\n-   Reinsurance and Other Recoveries Received\n\nThe following fields are NOT to be completed on a cumulative basis:\n\n-   Premium Earned\n-   Number of Claims\n-   Reinsurance Recoveries Receivable\n-   Other Recoveries Receivable\n-   Case Estimates\n\n(1) Premium Earned\n\nPremium earned is to be reported gross of reinsurance expense. Premium earned is to be reported in this form in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. recognised on an earned and unearned basis).\n\nThe amount reported for ‘Current Accident/Underwriting Year’ will then be the same reported for the ‘Accident/Underwriting Year – 1 Year Previous’ in the following financial year. For example:\n\n| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year – 2 Years Previous |\n| -------------------- | ---------------------------------- | -------------------------------------------- | --------------------------------------------- |\n| 31 December 2001     | 4,000                              | 2,000                                        |                                               |\n| 31 December 2002     | 5,000                              | 4,000                                        | 2,000                                         |\n\nPremium revenue is to take into account the following:\n\n-   Do not include amounts collected on behalf of third parties i.e. government stamp duty and taxes;\n-   Levies charged to customers are to be included such as fire service levies;\n-   Deduct returned premiums and rebates;\n-   Premiums are to be brought to account from the attachment date;\n-   For installment premium policies, the amount of the annualised premium is to be reported; and\n-   Premium revenue must be gross of reinsurance expense.\n\n(2) Number of Claims\n\nReport the total number of claims open for each class of business (i.e. not just new claims) as at the end of the reporting period for each accident/underwriting year.\n\nDo not include in this figure the number of claims recorded in relation to Incurred but not reported (IBNR) claims and do not include any claims that have been paid and closed.\n\nThe outstanding value of the number of open claims in this column should be recorded as the case estimate in (7).\n\nNote: this number should be reported in whole numbers of claims, not in thousands.\n\nThis column is not applicable for business written under proportional treaties as this information is generally not known.\n\n(3) Gross Claims Paid\n\nReport the amount of gross claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not adjust for reinsurance recoveries received.\n\n(4) Reinsurance and Other Recoveries Received\n\nReport the amount of reinsurance and other recoveries received on claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not include reinsurance and other recoveries recognised on an accrual basis.\n\n(5) Reinsurance Recoveries Receivable\n\nReport the amount of reinsurance recoveries that are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year. Report the undiscounted amount in accordance with AASB 1023 ‘General Insurance Contracts’.\n\n(6) Other recoveries receivable\n\nReport the amount of recoveries receivable other than recoveries from reinsurers (e.g. subrogation, salvage) as at the end of the development year for the specified accident/underwriting year. These are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year and must be undiscounted.\n\n(7) Case Estimate\n\nThe Case Estimate is to be disclosed by type of business (direct business and inwards reinsurance business). This relates to the Outstanding Claims Liability as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, the outstanding claims liability must be:\n\n-   The amount is the balance outstanding at the end of the year.\n-   Undiscounted;\n-   Gross of reinsurance recoveries;\n-   Based on ‘Case Estimate’ only, do not include a risk margin; and\n-   Do not include estimates of IBNR claims (Incurred but not reported).","sortOrder":13},{"sectionNumber":"Instruction Guide","sectionType":"division","heading":"Instruction Guide","content":"## Reporting Form GRF 440.0\n\n## Claims Development Table\n\n### Instruction Guide\n\n### Introduction\n\nThe purpose of this form is to capture information on the claims development profile of individual insurance companies.\n\n## This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.\n\nInsurers writing direct insurance business must complete this form based on accident years.\n\nInsurers writing reinsurance business must complete this form based on underwriting years.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nThe general requirements of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  Foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.\n\nTransactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’. However, those foreign currency derivatives that are not within the scope of AASB 139 ‘Financial Instruments: Recognition and Measurement’ (eg some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nFor APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post acquisition changes in equity are required to be translated on the date of the movement.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n\n-   Translation of financial reports should otherwise follow the requirements in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.\n\n## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 440.0 Claims Development Tables.\n\n###   \nSpecific instructions\n\nGeneral insurers that write direct insurance business must complete this form on an accident year basis while general insurers that write reinsurance business must complete this form on an underwriting year basis. These terms are explained below.\n\nAccident Year\n\nThis refers to the financial year that the losses/claims associated with individual policies are incurred. The form is to be completed for each of the following years:\n\n-   current accident year;\n-   accident year, 1 year previous;\n-   accident year, 2 years previous;\n-   accident year, 3 years previous;\n-   accident year, 4 years previous;\n-   accident year, 5 years previous;\n-   accident year, 6 years previous;\n-   accident year, 7 years previous;\n-   accident year, 8 years previous;\n-   accident year, 9 years previous;\n-   accident year, 10 years previous; and\n-   accident year, more than 10 years previous.\n\nUnderwriting Year\n\nUnderwriting year refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 January 2005 to 31 December 2005.\n\n-   current underwriting year;\n-   underwriting year, 1 year previous;\n-   underwriting year, 2 years previous;\n-   underwriting year, 3 years previous;\n-   underwriting year, 4 years previous;\n-   underwriting year, 5 years previous;\n-   underwriting year, 6 years previous;\n-   underwriting year, 7 years previous;\n-   underwriting year, 8 years previous;\n-   underwriting year, 9 years previous;\n-   underwriting year, 10 years previous; and\n-   underwriting year, more than 10 years previous.\n\nEach of the years in this form are complete years reported on a financial year to date basis as at the last business day of the financial year of the insurer. No adjustments are required to be made to prior year reported information.\n\nWhere possible insurers are requested to complete the entire series of years.\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of business for companies that are not specialist reinsurers are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n  \n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)\n\n##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.\n\n##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident (which provides stated benefits where the insured is killed or suffers loss of specific parts of the body or is prevented from carrying out the insured’s normal occupation. In addition, regular benefits may be paid over a short period of time (typically less than 3 years), noting that continuous disability policies are now considered to be Life Insurance Policies and should not be provided by General Insurance companies).\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   All guarantees (e.g. fidelity Guarantee)\n-   Trade Credit;\n-   Extended Warranty (includes insurance by a third party for a period in excess of the manufacturer's or seller’s normal warranty;\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n  \n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split: This line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately split out all the classes of reinsurance businesses.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, the contract must be allocated using an appropriate method, including the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that underwrites inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\nThe following fields are to be completed on a cumulative basis:\n\n-   Gross Claims Paid\n-   Reinsurance and Other Recoveries Received\n\nThe following fields are NOT to be completed on a cumulative basis:\n\n-   Premium Earned\n-   Number of Claims\n-   Reinsurance Recoveries Receivable\n-   Other Recoveries Receivable\n-   Case Estimates\n\n(1) Premium Earned\n\nPremium earned is to be reported gross of reinsurance expense. Premium earned is to be reported in this form in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. recognised on an earned and unearned basis).\n\nThe amount reported for ‘Current Accident/Underwriting Year’ will then be the same reported for the ‘Accident/Underwriting Year – 1 Year Previous’ in the following financial year. For example:\n\n| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year – 2 Years Previous |\n| -------------------- | ---------------------------------- | -------------------------------------------- | --------------------------------------------- |\n| 31 December 2001     | 4,000                              | 2,000                                        |                                               |\n| 31 December 2002     | 5,000                              | 4,000                                        | 2,000                                         |\n\nPremium revenue is to take into account the following:\n\n-   Do not include amounts collected on behalf of third parties i.e. government stamp duty and taxes;\n-   Levies charged to customers are to be included such as fire service levies;\n-   Deduct returned premiums and rebates;\n-   Premiums are to be brought to account from the attachment date;\n-   For installment premium policies, the amount of the annualised premium is to be reported; and\n-   Premium revenue must be gross of reinsurance expense.\n\n(2) Number of Claims\n\nReport the total number of claims open for each class of business (i.e. not just new claims) as at the end of the reporting period for each accident/underwriting year.\n\nDo not include in this figure the number of claims recorded in relation to Incurred but not reported (IBNR) claims and do not include any claims that have been paid and closed.\n\nThe outstanding value of the number of open claims in this column should be recorded as the case estimate in (7).\n\nNote: this number should be reported in whole numbers of claims, not in thousands.\n\nThis column is not applicable for business written under proportional treaties as this information is generally not known.\n\n(3) Gross Claims Paid\n\nReport the amount of gross claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not adjust for reinsurance recoveries received.\n\n(4) Reinsurance and Other Recoveries Received\n\nReport the amount of reinsurance and other recoveries received on claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not include reinsurance and other recoveries recognised on an accrual basis.\n\n(5) Reinsurance Recoveries Receivable\n\nReport the amount of reinsurance recoveries that are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year. Report the undiscounted amount in accordance with AASB 1023 ‘General Insurance Contracts’.\n\n(6) Other recoveries receivable\n\nReport the amount of recoveries receivable other than recoveries from reinsurers (e.g. subrogation, salvage) as at the end of the development year for the specified accident/underwriting year. These are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year and must be undiscounted.\n\n(7) Case Estimate\n\nThe Case Estimate is to be disclosed by type of business (direct business and inwards reinsurance business). This relates to the Outstanding Claims Liability as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, the outstanding claims liability must be:\n\n-   The amount is the balance outstanding at the end of the year.\n-   Undiscounted;\n-   Gross of reinsurance recoveries;\n-   Based on ‘Case Estimate’ only, do not include a risk margin; and\n-   Do not include estimates of IBNR claims (Incurred but not reported).","sortOrder":14},{"sectionNumber":"Introduction","sectionType":"division","heading":"Introduction","content":"### Introduction\n\nThe purpose of this form is to capture information on the claims development profile of individual insurance companies.","sortOrder":15},{"sectionNumber":"This instruction guide provides general ","sectionType":"part","heading":"This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.","content":"## This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.\n\nInsurers writing direct insurance business must complete this form based on accident years.\n\nInsurers writing reinsurance business must complete this form based on underwriting years.\n\nAudit requirements\n\nThe information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.\n\nReporting entities\n\nForms are to be completed for the following reporting entities where appropriate:\n\n1.  Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);\n2.  Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and\n3.  Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).\n\nUnit of measurement\n\nThis form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nThe general requirements of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ for translation are:\n\n1.  Foreign currency monetary items[\\[1\\]](#_ftn1) outstanding at the reporting date must be translated at the spot rate[\\[2\\]](#_ftn2) at the reporting date.\n2.  Foreign currency non-monetary items[\\[3\\]](#_ftn3) that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.\n3.  Foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.\n\nTransactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’. However, those foreign currency derivatives that are not within the scope of AASB 139 ‘Financial Instruments: Recognition and Measurement’ (eg some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nFor APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post acquisition changes in equity are required to be translated on the date of the movement.\n\nAs foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.\n\nExchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.\n\nThe ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.\n\n4. Translation of financial reports of foreign operations.\n\nA foreign operation is defined in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.\n\n-   Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.\n\n-   Translation of financial reports should otherwise follow the requirements in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.\n\nReporting period\n\nInsurers are required to report the information in the reporting form on an annual basis.\n\n-   The annual information is to be completed in respect of the financial year of the insurer.\n-   The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.","sortOrder":16},{"sectionNumber":"Reporting lag","sectionType":"part","heading":"Reporting lag","content":"## Reporting lag\n\nThis form must be lodged for each of the reporting units within the number of business days after the end of the quarter as set out in Reporting Standard GRS 440.0 Claims Development Tables.","sortOrder":17},{"sectionNumber":"Specific instructions","sectionType":"division","heading":"Specific instructions","content":"###   \nSpecific instructions\n\nGeneral insurers that write direct insurance business must complete this form on an accident year basis while general insurers that write reinsurance business must complete this form on an underwriting year basis. These terms are explained below.\n\nAccident Year\n\nThis refers to the financial year that the losses/claims associated with individual policies are incurred. The form is to be completed for each of the following years:\n\n-   current accident year;\n-   accident year, 1 year previous;\n-   accident year, 2 years previous;\n-   accident year, 3 years previous;\n-   accident year, 4 years previous;\n-   accident year, 5 years previous;\n-   accident year, 6 years previous;\n-   accident year, 7 years previous;\n-   accident year, 8 years previous;\n-   accident year, 9 years previous;\n-   accident year, 10 years previous; and\n-   accident year, more than 10 years previous.\n\nUnderwriting Year\n\nUnderwriting year refers to the financial year of the insurer in which the policy incepts, regardless of when the premiums and claims are actually reported, booked or paid. For example, the 2005 underwriting year for an insurer with a 30 June balance date includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 July 2005 to 30 June 2006. For an insurer with a 31 December balance date, the 2005 underwriting year includes premiums and claims (both paid and outstanding) relating to policies incepting in the period 1 January 2005 to 31 December 2005.\n\n-   current underwriting year;\n-   underwriting year, 1 year previous;\n-   underwriting year, 2 years previous;\n-   underwriting year, 3 years previous;\n-   underwriting year, 4 years previous;\n-   underwriting year, 5 years previous;\n-   underwriting year, 6 years previous;\n-   underwriting year, 7 years previous;\n-   underwriting year, 8 years previous;\n-   underwriting year, 9 years previous;\n-   underwriting year, 10 years previous; and\n-   underwriting year, more than 10 years previous.\n\nEach of the years in this form are complete years reported on a financial year to date basis as at the last business day of the financial year of the insurer. No adjustments are required to be made to prior year reported information.\n\nWhere possible insurers are requested to complete the entire series of years.\n\nClasses of Insurance Business\n\n1.  Direct Business\n\nThe classes of business for companies that are not specialist reinsurers are as follows:\n\n(I). Houseowners/Householders (H & H)\n\nThis class covers the common H & H policies inclusive of:\n\n-   Contents;\n-   Personal property;\n-   Arson; and\n-   Burglary.\n\nPublic liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).\n\n(II). Commercial Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.\n\n  \n\n(III). Domestic Motor Vehicle\n\nMotor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.\n\n(IV). Travel\n\nInsurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.\n\n(V). Fire and Industrial Special Risks (ISR)","sortOrder":18},{"sectionNumber":"Fire","sectionType":"section","heading":"Fire","content":"##### Fire\n\nIncludes all policies normally classified as 'Fire' and includes:\n\n-   sprinkler leakage;\n-   subsidence;\n-   windstorm;\n-   hailstone;\n-   crop;\n-   arson; and\n-   loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.","sortOrder":19},{"sectionNumber":"ISR","sectionType":"section","heading":"ISR","content":"##### ISR\n\nStandard policy wordings exist for this type of policy. All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.\n\n(VI). Marine\n\nIncludes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).\n\n(VII). Aviation\n\nAviation (including aircraft hull and aircraft liability).\n\n(VIII). Mortgage\n\nInsurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed. It includes lease guarantee.\n\n(IX). Consumer Credit (CCI)\n\nInsurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.\n\n(X). Other Accident\n\nIncludes the following types of insurance:\n\n-   Miscellaneous accident (involving cash in transit, theft, loss of money);\n-   All risks (baggage, sporting equipment, guns);\n-   Engineering when not part of ISR or Fire policy;\n-   Plate glass when not part of packaged policy (e.g. houseowners /householders)\n-   Guarantee (Insurance Bonds);\n-   Live Stock;\n-   Pluvius; and\n-   Sickness and Accident (which provides stated benefits where the insured is killed or suffers loss of specific parts of the body or is prevented from carrying out the insured’s normal occupation. In addition, regular benefits may be paid over a short period of time (typically less than 3 years), noting that continuous disability policies are now considered to be Life Insurance Policies and should not be provided by General Insurance companies).\n\n(XI). Other\n\nAll other insurance business not specifically mentioned elsewhere. It includes, for example:\n\n-   All guarantees (e.g. fidelity Guarantee)\n-   Trade Credit;\n-   Extended Warranty (includes insurance by a third party for a period in excess of the manufacturer's or seller’s normal warranty;\n-   Kidnap and Ransom; and\n-   Contingency.\n\n(XII). Compulsory Third Party Motor Vehicle (CTP)\n\nThis class consists only of CTP business.\n\n  \n\n(XIII). Public and Product Liability\n\n-   Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business. Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.\n-   Also will include builders warranty insurance.\n-   Includes public liability attaching to houseowners/householders policies.\n\n(XIV). Professional Indemnity (PI)\n\nIncludes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.\n\n(XV). Employers' Liability (EL)\n\nIncludes:\n\n-   Workers' compensation;\n-   Seamen's compensation; and\n-   Domestic workers compensation.\n\n2. Reinsurance Business\n\nThe classes of business for companies that provide reinsurance are as follows:\n\nTreaty Proportional: This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.\n\nTreaty Excess of Loss: This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nFacultative Proportional: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.\n\nFacultative Excess of Loss: This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis. The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.\n\nReinsurance non-split: This line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately split out all the classes of reinsurance businesses.\n\nWhere an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, the contract must be allocated using an appropriate method, including the following methods:\n\n(a) allocate the contract to the category which represents the greatest exposure; or\n\n(b) allocate the contract to the category representing the greatest premium income.\n\nAn insurer that underwrites inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.\n\nThe following fields are to be completed on a cumulative basis:\n\n-   Gross Claims Paid\n-   Reinsurance and Other Recoveries Received\n\nThe following fields are NOT to be completed on a cumulative basis:\n\n-   Premium Earned\n-   Number of Claims\n-   Reinsurance Recoveries Receivable\n-   Other Recoveries Receivable\n-   Case Estimates\n\n(1) Premium Earned\n\nPremium earned is to be reported gross of reinsurance expense. Premium earned is to be reported in this form in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. recognised on an earned and unearned basis).\n\nThe amount reported for ‘Current Accident/Underwriting Year’ will then be the same reported for the ‘Accident/Underwriting Year – 1 Year Previous’ in the following financial year. For example:\n\n| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year – 2 Years Previous |\n| -------------------- | ---------------------------------- | -------------------------------------------- | --------------------------------------------- |\n| 31 December 2001     | 4,000                              | 2,000                                        |                                               |\n| 31 December 2002     | 5,000                              | 4,000                                        | 2,000                                         |\n\nPremium revenue is to take into account the following:\n\n-   Do not include amounts collected on behalf of third parties i.e. government stamp duty and taxes;\n-   Levies charged to customers are to be included such as fire service levies;\n-   Deduct returned premiums and rebates;\n-   Premiums are to be brought to account from the attachment date;\n-   For installment premium policies, the amount of the annualised premium is to be reported; and\n-   Premium revenue must be gross of reinsurance expense.\n\n(2) Number of Claims\n\nReport the total number of claims open for each class of business (i.e. not just new claims) as at the end of the reporting period for each accident/underwriting year.\n\nDo not include in this figure the number of claims recorded in relation to Incurred but not reported (IBNR) claims and do not include any claims that have been paid and closed.\n\nThe outstanding value of the number of open claims in this column should be recorded as the case estimate in (7).\n\nNote: this number should be reported in whole numbers of claims, not in thousands.\n\nThis column is not applicable for business written under proportional treaties as this information is generally not known.\n\n(3) Gross Claims Paid\n\nReport the amount of gross claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not adjust for reinsurance recoveries received.\n\n(4) Reinsurance and Other Recoveries Received\n\nReport the amount of reinsurance and other recoveries received on claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and reinsurance business. Do not include reinsurance and other recoveries recognised on an accrual basis.\n\n(5) Reinsurance Recoveries Receivable\n\nReport the amount of reinsurance recoveries that are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year. Report the undiscounted amount in accordance with AASB 1023 ‘General Insurance Contracts’.\n\n(6) Other recoveries receivable\n\nReport the amount of recoveries receivable other than recoveries from reinsurers (e.g. subrogation, salvage) as at the end of the development year for the specified accident/underwriting year. These are expected to be received in relation to claims recognised in the calculation of the outstanding claims provision and claims paid.\n\nThe amount is the balance outstanding at the end of the year and must be undiscounted.\n\n(7) Case Estimate\n\nThe Case Estimate is to be disclosed by type of business (direct business and inwards reinsurance business). This relates to the Outstanding Claims Liability as at the end of the development year for the specified accident/underwriting year.\n\nFor the purposes of this form, the outstanding claims liability must be:\n\n-   The amount is the balance outstanding at the end of the year.\n-   Undiscounted;\n-   Gross of reinsurance recoveries;\n-   Based on ‘Case Estimate’ only, do not include a risk margin; and\n-   Do not include estimates of IBNR claims (Incurred but not reported).","sortOrder":20}],"analysis":{"kimi_summary":{"_metrics":{"model":"kimi-k2.5","source":"moonshot-realtime","completionTokens":1869},"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The standard maintains its original narrow scope focused solely on collecting claims development data from general insurers for prudential supervision purposes. It does not appear to have expanded beyond this specific data collection function."},"complexity_factors":["References to 3 separate accounting standards (AASB 121, AASB 1023, AASB 139) for currency translation and financial instruments","20 distinct classes of insurance business (15 direct + 5 reinsurance) with specific definitions and inclusions","Dual reporting frameworks requiring different data organisation (accident year for direct insurers vs underwriting year for reinsurers)","Cross-references to 3 pieces of legislation (Financial Sector (Collection of Data) Act, Insurance Act 1973, Corporations Act 2001)","Complex submission rules with conditional logic for electronic vs paper filing, agent submissions, and digital certificate requirements","Specific measurement constraints (AUD thousands, undiscounted amounts, cumulative vs non-cumulative fields)"],"plain_english_summary":"This law requires all Australian general insurers (including foreign branches and reinsurers) to submit claims development data to APRA using Form GRF 440.0, normally annually. Reports—by insurance/reinsurance class and accident or underwriting year—must show premiums, open claims, cumulative payments, recoveries, expected recoveries and undiscounted case estimates. Filing is due four months after year‑end (electronic or signed paper), amounts in AUD thousands, follows stated accounting rules, and is exempt from audit. APRA uses the data to monitor reserve adequacy and insurer solvency."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"The instrument replaces an earlier reporting standard and applies to all insurers from 1 January 2007 (paragraphs 2 and 15). It does not, on its face, expand or narrow the categories of entities required to report beyond the prior requirement; instead it specifies form content, measurement rules and administrative procedures while preserving APRA's discretion to vary frequency or grant waivers (paragraphs 6, 13–14)."},"complexity_factors":["Multiple reporting entities and units (branch operations, authorised insurers, authorised reinsurance entities) increasing aggregation and mapping complexity (Instruction Guide: Reporting entities).","Different reporting bases required: accident years for direct business versus underwriting years for reinsurance (Instruction Guide: Accident Year / Underwriting Year).","Detailed class taxonomy (15 direct classes plus reinsurance types) requiring consistent classification across periods (Instruction Guide: Classes of Insurance Business).","Field-level measurement rules and mixed cumulative vs non-cumulative treatments (e.g. Gross Claims Paid cumulative; Premium Earned non-cumulative) requiring careful data processing (Specific instructions, fields list).","Accounting and translation dependencies on Australian accounting standards (AASB 121, AASB 139, AASB 1023) affecting currency translation, recognition and measurement (Unit of measurement section; Premium Earned; Reinsurance Recoveries Receivable).","Case estimates must be undiscounted, gross of reinsurance and exclude IBNR and risk margin — this creates actuarial/formatting constraints (Case Estimate instructions).","Reinsurance allocation options where contracts span multiple classes require insurers to choose and then consistently apply a method (Reinsurance allocation methods).","Authorisation and submission rules require digital signing under 'Direct to APRA' or CEO/CFO signature for paper forms; agents have additional record and lodging obligations (paragraphs 4, 10–12, 11).","APRA discretion to change reporting frequency, grant extensions or waive paper-signature lodging introduces regulatory variability and implementation risk (paragraphs 6, 8, 11 note).","Non‑audit exemption for the form but continuing board/senior management responsibility for internal controls creates an assurance gap that insurers must manage operationally (Audit requirements; paragraph 9)."],"plain_english_summary":"This standard requires all general insurers, including foreign branches, to submit annual claims-development data to APRA using Form GRF 440.0. It sets what to report (e.g. premium earned, number of open claims, gross claims paid, reinsurance recoveries, case estimates), measurement rules (AUD, rounding, AASB translation/recognition), and timing (generally four months after year‑end).\n\nAPRA may change frequency or waive requirements. Insurers must maintain internal controls and sign or digitally authorise submissions. APRA says the data are collected for prudential supervision; compliance creates ongoing data, accounting and control costs for insurers."}},"importantCases":[],"_links":{"self":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-90-of-2006-reporting-standar","history":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-90-of-2006-reporting-standar/history","analysis":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-90-of-2006-reporting-standar/analysis","conflicts":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-90-of-2006-reporting-standar/conflicts","importantCases":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-90-of-2006-reporting-standar/important-cases","documents":"/api/acts/financial-sector-collection-of-data-reporting-standard-determination-no-90-of-2006-reporting-standar/documents"}}