IntroductionIntroduction

Introduction

This instruction guide is designed to assist in the completion of GRF 210.0 Outstanding Claims Provision – Insurance Risk Charge.

The form can be used to calculate the risk capital charge associated with the licensed insurer’s Outstanding Claims Provision in accordance with GGN 110.3 Insurance Risk Capital Charge.

The value of the outstanding claims provision and the reinsurance recoveries that are included in this form must be measured in accordance with GPS 210 Liability Valuation for General Insurers.

Note: Risk charge is not applied to consolidated insurance group data.

The purpose of this form is to provide detailed information in relation to the following:

1. Outstanding claims provision by class of business (direct business and reinsurance);
2. Total outstanding claims provision split between:

• insurance business written (directly by the insurer and by inward reinsurance);
• insurance business received or written indirectly through underwriting pools or joint ventures; and
• insurance portfolio transfers to the accepting insurer;

3. Central estimate of outstanding claims provision gross of reinsurance and non recoveries;

4. Risk margin for outstanding claims provision (in accordance with GPS 210 Liability Valuation for General Insurers) gross of reinsurance and non recoveries;

5. The component of the outstanding claims provision that is classified as current liabilities; and

6. The component of the outstanding claims provision classified as non-current liabilities.