Claims ExpenseClaims Expense

Claims Expense

Report claims expense Inside Australia according to where the risk is located.

Claims expense for the purpose of this form is to be interpreted as the same meaning for claims expense as calculated and reported in GRF 310.2 Claims Expense and Reinsurance Recoveries.

Where the insurer does not have insurance business outside of Australia (i.e. claims liabilities) the total claims expense amounts on this form should agree to the aggregate amount of claims expense recorded from Direct Business in GRF 310.2 Claims Expense and Reinsurance Recoveries. In addition the total claims expense should then also agree to the amount of claims expense disclosed from direct business, for the line item titled “Claims Expense relating to current and prior years” in GRF 310.0 Statement of Financial Performance.

For the purposes of this form:

• Do not include movements in the Premium Liabilities as claims expense;
• Do not include government taxes in claims expense;
• Claims expense can include an allocation for claims handling expenses to the extent that is permitted by AASB 1023; and
• Claims expense is gross of reinsurance recoveries.

Classes of Insurance Business

1. Direct Business

The classes of business for companies that are not specialist reinsurers are as follows:

(I). Houseowners/Householders (H & H)

This class covers the common H & H policies inclusive of:

• Contents;
• Personal property;
• Arson; and
• Burglary.

Public liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item 8.

(II). Commercial Motor Vehicle

Motor 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.

(III). Domestic Motor Vehicle

Motor 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.

(IV). Travel

Insurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.

(V). Fire and Industrial Special Risks (ISR)