Reporting Standard GRS 440.0 (2005)
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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
This instrument requires all general insurers — including foreign branches and highest parent entities of consolidated insurance groups — to submit claims-development tables to APRA (Form GRF 440.0) on an annual basis, by electronic or paper means (paras 1–5). APRA may change reporting frequency or grant extensions (paras 7–9).
Insurers pay the compliance cost: boards must put in authorisation controls and officers must digitally sign electronic filings. APRA uses the data for prudential supervision (para 1; paras 10–12).
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Direct links to the current provisions in Financial Sector (Collection of Data) determination No. 27 of 2005.
This 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.
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
An insurer must provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Licensed Insurer’ for each reporting period.
An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Note: 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.
(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
(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 6).
The information required by paragraphs 3 and 4 of this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.
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.
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.
If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.
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:
(a) the Principal Executive Officer of the insurer; or
(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).
(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
(b) the instructions, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
- If APRA makes such a variation it must notify general insurers in writing.
Transitional
Interpretation
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005;
approved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;
consolidated insurance group means a group comprising:
(a) an insurer that is a highest parent entity; and
(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;
foreign insurer means a foreign general insurer within the meaning of the Insurance Act;
Note: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.
highest parent entity means an insurer that satisfies all of the following conditions:
(a) it is incorporated in Australia;
(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;
Insurance Act means the Insurance Act 1973;
insurer means a general insurer within the meaning of the Insurance Act;
Note: 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.
Principal 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;
This 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.
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
An insurer must provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Licensed Insurer’ for each reporting period.
An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Note: 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.
(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
(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 6).
The information required by paragraphs 3 and 4 of this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.
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.
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.
If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.
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:
(a) the Principal Executive Officer of the insurer; or
(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).
(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
(b) the instructions, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
- If APRA makes such a variation it must notify general insurers in writing.
Transitional
Interpretation
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005;
approved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;
consolidated insurance group means a group comprising:
(a) an insurer that is a highest parent entity; and
(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;
foreign insurer means a foreign general insurer within the meaning of the Insurance Act;
Note: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.
highest parent entity means an insurer that satisfies all of the following conditions:
(a) it is incorporated in Australia;
(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;
Insurance Act means the Insurance Act 1973;
insurer means a general insurer within the meaning of the Insurance Act;
Note: 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.
Principal 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;
This 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.
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
An insurer must provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Licensed Insurer’ for each reporting period.
An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Note: 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.
(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
(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 6).
The information required by paragraphs 3 and 4 of this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.
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.
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.
If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.
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:
(a) the Principal Executive Officer of the insurer; or
(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).
(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
(b) the instructions, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
- If APRA makes such a variation it must notify general insurers in writing.
Transitional
Interpretation
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005;
approved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;
consolidated insurance group means a group comprising:
(a) an insurer that is a highest parent entity; and
(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;
foreign insurer means a foreign general insurer within the meaning of the Insurance Act;
Note: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.
highest parent entity means an insurer that satisfies all of the following conditions:
(a) it is incorporated in Australia;
(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;
Insurance Act means the Insurance Act 1973;
insurer means a general insurer within the meaning of the Insurance Act;
Note: 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.
Principal 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;
The purpose of this form is to capture information on the claims development profile of individual insurance companies and will also be used to construct industry data.
Insurers writing direct insurance business must complete this form based on accident years.
Insurers writing reinsurance business must complete this form based on underwriting years.
Audit requirements
The information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.
Reporting entities
Forms are to be completed for the following reporting entities where appropriate:
Note: the form for the consolidated insurance group is only required to complete the information requirements on the form. No risk change is applied to the consolidated insurance group at this stage.
For the purposes of APRA prudential reporting, the consolidated insurance group is interpreted as the accounts incorporating the highest parent entity in a group structure, that is an Australian authorised general insurance entity (for the purposes of the Insurance Act 1973), and includes all subsidiaries, associates and joint ventures (registered both in Australia and overseas) of that parent entity.
For the purposes of this form, the highest parent entity in the corporate group does not include a company (e.g. non-operating holding company) that is not an authorised general insurance entity.
Definition of subsidiaries should be consistent with the requirements of Australian accounting standards AASB 1024 ‘Consolidated Accounts’ and definition of associates should be consistent with AASB 1016 ‘Accounting for Investments in Associates’.
Exemptions from the Consolidated Insurance Group requirements
Unit of measurement
This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. As a general rule, amounts denominated in foreign currency are to be converted to AUD in accordance with the requirements of the Australian accounting standards, notably AASB 1012 ‘Foreign Currency Translation’.
The general requirements of AASB 1012 for translation are:
Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money (e.g. claims payments, reinsurance recoveries).
Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:
The general requirements of AASB 1012 for accounting treatment of exchange differences arising on translation are:
(A foreign operation is defined in AASB 1012 as meaning an entity for which financial reports are prepared in a foreign currency, and includes branches, associates and subsidiaries).
However on incorporation of that foreign operation into the entity’s financial report (i.e. the preparation of consolidated group accounts), the translation of the financial reports of a self sustaining foreign operation as at the reporting date must be done using the current rate method (see below). Any exchange differences, together with any income tax expense (income tax revenue) must be taken directly to the foreign currency translation reserve within equity.
A self-sustaining foreign operation is defined in AASB 1012 as meaning a foreign operation that is financially and operational independent of the entity and whose operations do not normally expose the entity to foreign exchange gains and or losses.
An integrated foreign operation is defined in AASB 1012 as a foreign operation that is financially and operationally interdependent, either directly or indirectly with the entity, and whose day to day operations normally expose the entity to foreign exchange gains or losses.
Current Rate Method of Translation
(a) Assets and liabilities are translated at the spot rate at the reporting date;
(b) Equity at the date of investment, including in the case of a corporation, share capital at acquisition and pre-acquisition reserves, is translated at the exchange rate current at that date;
(c) Post-acquisition movements in equity, other than retained profits (surplus) or accumulated losses (deficiency), are translated at the exchange rates current at the dates of those movements, except that where a movement represents a transfer between items within equity or a return of equity, the movement is translated at the exchange rate current at the date that the amount transferred or returned was first included in equity;
(d) Distributions from retained profits (that is, dividends paid or proposed, or their equivalent) are translated at the exchange rates current at the dates when the distributions were first recognised; and
(e) Revenue and expense items are translated at the exchange rates current at the applicable transaction dates except that revenues and expenses that have been restated in accordance with paragraph 7.11 of AASB 1012 are translated at the spot rate at the reporting date.[1]
Temporal Method of Translation
Means a method of translating the financial report of a foreign operation whereby:
(a) (i) monetary items are translated at the spot rate at the reporting date; and
(ii) non-monetary items are translated at exchange rates current at the transaction dates or, where a non-monetary item has been revalued or written-down or the write-down has been reversed, at the exchange rate current at the date of revaluation, write-down or reversal;
(b) equity at the date of investment, including in the case of a corporation, share capital at acquisition and pre-acquisition reserves, is translated at the exchange rate current at that date;
(c) post-acquisition movements in equity, other than retained profits (surplus) or accumulated losses (deficiency), are translated at the exchange rates current at the dates of those movements, except that where a movement represents a transfer between items within equity or a return of equity, the movement is translated at the exchange rate current at the date that the amount transferred or returned was first included in equity;
(d) distributions from retained profits (that is, dividends paid or proposed, or their equivalent) are translated at the exchange rates current at the dates when the distributions were first recognised; and
(e) revenue and expense items are translated at the exchange rates current at the applicable transaction dates, except that:
(i) revenues and expenses (including depreciation) that relate to non-monetary items are translated at the rates used to translate those non-monetary items; and
(ii) revenues and expenses that have been restated in accordance with paragraph 7.11 are translated at the spot rate at the reporting date.[2]
Spot rate means the exchange rate for immediate delivery of currencies to be exchanged.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
This 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 the Reporting Requirements table.
Specific instructions
General insurers that are writers of reinsurance business must complete this form based on underwriting year while general insurers that are writers of direct insurance business must complete this form based on accident year basis. These terms are explained below.
Accident Year
This refers to the year that the losses/claims associated with individual policies are incurred. The form is to be completed for each of the following years:
Underwriting Year
Underwriting year refers to the year that the individual policy attaches and the subsequent risk associated with this policy accepted by the insurer, regardless of when the premiums and losses are actually reported, booked or paid. For example the 2001 underwriting year includes results in calendar year 2001 and all future calendar years on business bound in 2001.
Each 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.
Where possible insurers are requested to complete the entire series of years.
Classes of Insurance 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:
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)
Includes all policies normally classified as 'Fire' and includes:
Standard 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.
(VI). Marine
Includes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).
(VII). Aviation
Aviation (including aircraft hull and aircraft liability).
(VIII). Mortgage
Insurance 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.
(IX). Consumer Credit (CCI)
Insurance 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.
(X). Other Accident
Includes the following types of insurance:
(XI). Other
All other insurance business not specifically mentioned elsewhere. It includes, for example:
(XII). Compulsory Third Party Motor Vehicle (CTP)
This class consists only of CTP business.
(XIII). Public and Product Liability
(XIV). Professional Indemnity (PI)
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses general included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
The classes of business for companies that are specialist reinsurers are as follows:
(I). Facultative;
(II). Proportional; and
(III). Excess of loss.
(I). Facultative Reinsurance
The reinsurance of individual risks by offer and acceptance wherein the reinsurer has the “faculty” (option) to accept or reject each offer by the ceding company.
(II). Proportional Reinsurance
A proportional treaty is an agreement between an insurer and a reinsurer in which the reinsurer shares an identical proportion of the premiums and losses of the ceding company.
(III). Excess of Loss Reinsurance
Reinsurance which, subject to a specified limit, indemnifies the ceding company against the loss in excess of a specified retention. This type of reinsurance can involve:
Reinsurance 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 slit out all the classes of reinsurance businesses. However as required by GGN 110.3 Insurance Risk Capital Charge, where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed in Table 2 of this Guidance Note, they are to use the highest casualty factors on their outstanding claims liabilities.
Where an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, APRA suggests that the contract should be allocated using one of the following methods:
(a) allocate the contract to the category which represents the greatest exposure; or
(b) allocate the contract to the category representing the greatest premium income.
An insurer that writes 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.
(1) Premium Earned ($'000)
Premium earned is to be reported gross of reinsurance expense. Premium earned is to be reported in this form only in accordance with AASB 1023 (i.e. recognised on an earned and unearned basis).
The amount reported for Current Accident/Underwriting Year will then be the same reported for the Accident/Underwriting Year - 1Year Previous in the following financial year. For example:
| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year - 2 Years Previous |
|---|---|---|---|
| 31 December 2001 | 4,000 | 2,000 | |
| 31 December 2002 | 5,000 | 4,000 | 2,000 |
Premium revenue is to take into account the following:
(2) Number of Claims
Report the total number of claims recorded for each class of business (total not just new claims). DO NOT include in this figure the number of claims recorded in relation to IBNRs and do not include number of claims paid.
This column is not applicable for business written under proportional treaties as this information is generally not known.
(3) Gross Claims Paid ($'000)
Report the amount of gross claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and re-insurance business. Do not adjust for reinsurance recoveries received.
(4) Reinsurance and Other Recoveries Received ($'000)
Report the amount of reinsurance and other recoveries received on claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and re-insurance business. Do not include reinsurance and other recoveries recognised on an accrual basis.
(5) Reinsurance Recoveries Receivable ($'000)
(6) Other recoveries receivable ($’000)
(7) Case Estimate - Gross Outstanding Claims Liability ($'000)
The Outstanding Claims liability is to be disclosed by type of business (direct business and inward reinsurance business). This relates to the Outstanding Claims Liability as at the end of the development year for the specified accident/underwriting year.
For the purposes of this form, the outstanding claims liability must be:
The purpose of this form is to capture information on the claims development profile of individual insurance companies and will also be used to construct industry data.
Insurers writing direct insurance business must complete this form based on accident years.
Insurers writing reinsurance business must complete this form based on underwriting years.
Audit requirements
The information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.
Reporting entities
Forms are to be completed for the following reporting entities where appropriate:
Note: the form for the consolidated insurance group is only required to complete the information requirements on the form. No risk change is applied to the consolidated insurance group at this stage.
For the purposes of APRA prudential reporting, the consolidated insurance group is interpreted as the accounts incorporating the highest parent entity in a group structure, that is an Australian authorised general insurance entity (for the purposes of the Insurance Act 1973), and includes all subsidiaries, associates and joint ventures (registered both in Australia and overseas) of that parent entity.
For the purposes of this form, the highest parent entity in the corporate group does not include a company (e.g. non-operating holding company) that is not an authorised general insurance entity.
Definition of subsidiaries should be consistent with the requirements of Australian accounting standards AASB 1024 ‘Consolidated Accounts’ and definition of associates should be consistent with AASB 1016 ‘Accounting for Investments in Associates’.
Exemptions from the Consolidated Insurance Group requirements
Unit of measurement
This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. As a general rule, amounts denominated in foreign currency are to be converted to AUD in accordance with the requirements of the Australian accounting standards, notably AASB 1012 ‘Foreign Currency Translation’.
The general requirements of AASB 1012 for translation are:
Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money (e.g. claims payments, reinsurance recoveries).
Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:
The general requirements of AASB 1012 for accounting treatment of exchange differences arising on translation are:
(A foreign operation is defined in AASB 1012 as meaning an entity for which financial reports are prepared in a foreign currency, and includes branches, associates and subsidiaries).
However on incorporation of that foreign operation into the entity’s financial report (i.e. the preparation of consolidated group accounts), the translation of the financial reports of a self sustaining foreign operation as at the reporting date must be done using the current rate method (see below). Any exchange differences, together with any income tax expense (income tax revenue) must be taken directly to the foreign currency translation reserve within equity.
A self-sustaining foreign operation is defined in AASB 1012 as meaning a foreign operation that is financially and operational independent of the entity and whose operations do not normally expose the entity to foreign exchange gains and or losses.
An integrated foreign operation is defined in AASB 1012 as a foreign operation that is financially and operationally interdependent, either directly or indirectly with the entity, and whose day to day operations normally expose the entity to foreign exchange gains or losses.
Current Rate Method of Translation
(a) Assets and liabilities are translated at the spot rate at the reporting date;
(b) Equity at the date of investment, including in the case of a corporation, share capital at acquisition and pre-acquisition reserves, is translated at the exchange rate current at that date;
(c) Post-acquisition movements in equity, other than retained profits (surplus) or accumulated losses (deficiency), are translated at the exchange rates current at the dates of those movements, except that where a movement represents a transfer between items within equity or a return of equity, the movement is translated at the exchange rate current at the date that the amount transferred or returned was first included in equity;
(d) Distributions from retained profits (that is, dividends paid or proposed, or their equivalent) are translated at the exchange rates current at the dates when the distributions were first recognised; and
(e) Revenue and expense items are translated at the exchange rates current at the applicable transaction dates except that revenues and expenses that have been restated in accordance with paragraph 7.11 of AASB 1012 are translated at the spot rate at the reporting date.[1]
Temporal Method of Translation
Means a method of translating the financial report of a foreign operation whereby:
(a) (i) monetary items are translated at the spot rate at the reporting date; and
(ii) non-monetary items are translated at exchange rates current at the transaction dates or, where a non-monetary item has been revalued or written-down or the write-down has been reversed, at the exchange rate current at the date of revaluation, write-down or reversal;
(b) equity at the date of investment, including in the case of a corporation, share capital at acquisition and pre-acquisition reserves, is translated at the exchange rate current at that date;
(c) post-acquisition movements in equity, other than retained profits (surplus) or accumulated losses (deficiency), are translated at the exchange rates current at the dates of those movements, except that where a movement represents a transfer between items within equity or a return of equity, the movement is translated at the exchange rate current at the date that the amount transferred or returned was first included in equity;
(d) distributions from retained profits (that is, dividends paid or proposed, or their equivalent) are translated at the exchange rates current at the dates when the distributions were first recognised; and
(e) revenue and expense items are translated at the exchange rates current at the applicable transaction dates, except that:
(i) revenues and expenses (including depreciation) that relate to non-monetary items are translated at the rates used to translate those non-monetary items; and
(ii) revenues and expenses that have been restated in accordance with paragraph 7.11 are translated at the spot rate at the reporting date.[2]
Spot rate means the exchange rate for immediate delivery of currencies to be exchanged.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
This 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 the Reporting Requirements table.
Specific instructions
General insurers that are writers of reinsurance business must complete this form based on underwriting year while general insurers that are writers of direct insurance business must complete this form based on accident year basis. These terms are explained below.
Accident Year
This refers to the year that the losses/claims associated with individual policies are incurred. The form is to be completed for each of the following years:
Underwriting Year
Underwriting year refers to the year that the individual policy attaches and the subsequent risk associated with this policy accepted by the insurer, regardless of when the premiums and losses are actually reported, booked or paid. For example the 2001 underwriting year includes results in calendar year 2001 and all future calendar years on business bound in 2001.
Each 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.
Where possible insurers are requested to complete the entire series of years.
Classes of Insurance 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:
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)
Includes all policies normally classified as 'Fire' and includes:
Standard 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.
(VI). Marine
Includes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).
(VII). Aviation
Aviation (including aircraft hull and aircraft liability).
(VIII). Mortgage
Insurance 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.
(IX). Consumer Credit (CCI)
Insurance 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.
(X). Other Accident
Includes the following types of insurance:
(XI). Other
All other insurance business not specifically mentioned elsewhere. It includes, for example:
(XII). Compulsory Third Party Motor Vehicle (CTP)
This class consists only of CTP business.
(XIII). Public and Product Liability
(XIV). Professional Indemnity (PI)
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses general included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
The classes of business for companies that are specialist reinsurers are as follows:
(I). Facultative;
(II). Proportional; and
(III). Excess of loss.
(I). Facultative Reinsurance
The reinsurance of individual risks by offer and acceptance wherein the reinsurer has the “faculty” (option) to accept or reject each offer by the ceding company.
(II). Proportional Reinsurance
A proportional treaty is an agreement between an insurer and a reinsurer in which the reinsurer shares an identical proportion of the premiums and losses of the ceding company.
(III). Excess of Loss Reinsurance
Reinsurance which, subject to a specified limit, indemnifies the ceding company against the loss in excess of a specified retention. This type of reinsurance can involve:
Reinsurance 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 slit out all the classes of reinsurance businesses. However as required by GGN 110.3 Insurance Risk Capital Charge, where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed in Table 2 of this Guidance Note, they are to use the highest casualty factors on their outstanding claims liabilities.
Where an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, APRA suggests that the contract should be allocated using one of the following methods:
(a) allocate the contract to the category which represents the greatest exposure; or
(b) allocate the contract to the category representing the greatest premium income.
An insurer that writes 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.
(1) Premium Earned ($'000)
Premium earned is to be reported gross of reinsurance expense. Premium earned is to be reported in this form only in accordance with AASB 1023 (i.e. recognised on an earned and unearned basis).
The amount reported for Current Accident/Underwriting Year will then be the same reported for the Accident/Underwriting Year - 1Year Previous in the following financial year. For example:
| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year - 2 Years Previous |
|---|---|---|---|
| 31 December 2001 | 4,000 | 2,000 | |
| 31 December 2002 | 5,000 | 4,000 | 2,000 |
Premium revenue is to take into account the following:
(2) Number of Claims
Report the total number of claims recorded for each class of business (total not just new claims). DO NOT include in this figure the number of claims recorded in relation to IBNRs and do not include number of claims paid.
This column is not applicable for business written under proportional treaties as this information is generally not known.
(3) Gross Claims Paid ($'000)
Report the amount of gross claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and re-insurance business. Do not adjust for reinsurance recoveries received.
(4) Reinsurance and Other Recoveries Received ($'000)
Report the amount of reinsurance and other recoveries received on claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and re-insurance business. Do not include reinsurance and other recoveries recognised on an accrual basis.
(5) Reinsurance Recoveries Receivable ($'000)
(6) Other recoveries receivable ($’000)
(7) Case Estimate - Gross Outstanding Claims Liability ($'000)
The Outstanding Claims liability is to be disclosed by type of business (direct business and inward reinsurance business). This relates to the Outstanding Claims Liability as at the end of the development year for the specified accident/underwriting year.
For the purposes of this form, the outstanding claims liability must be:
The purpose of this form is to capture information on the claims development profile of individual insurance companies and will also be used to construct industry data.
Insurers writing direct insurance business must complete this form based on accident years.
Insurers writing reinsurance business must complete this form based on underwriting years.
Audit requirements
The information provided under the form is not required to be audited and has been exempted from the definition of ‘yearly statutory accounts’.
Reporting entities
Forms are to be completed for the following reporting entities where appropriate:
Note: the form for the consolidated insurance group is only required to complete the information requirements on the form. No risk change is applied to the consolidated insurance group at this stage.
For the purposes of APRA prudential reporting, the consolidated insurance group is interpreted as the accounts incorporating the highest parent entity in a group structure, that is an Australian authorised general insurance entity (for the purposes of the Insurance Act 1973), and includes all subsidiaries, associates and joint ventures (registered both in Australia and overseas) of that parent entity.
For the purposes of this form, the highest parent entity in the corporate group does not include a company (e.g. non-operating holding company) that is not an authorised general insurance entity.
Definition of subsidiaries should be consistent with the requirements of Australian accounting standards AASB 1024 ‘Consolidated Accounts’ and definition of associates should be consistent with AASB 1016 ‘Accounting for Investments in Associates’.
Exemptions from the Consolidated Insurance Group requirements
Unit of measurement
This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. As a general rule, amounts denominated in foreign currency are to be converted to AUD in accordance with the requirements of the Australian accounting standards, notably AASB 1012 ‘Foreign Currency Translation’.
The general requirements of AASB 1012 for translation are:
Monetary items are defined to mean money held and assets and liabilities that are to be received or paid in fixed or determinable amounts of money (e.g. claims payments, reinsurance recoveries).
Monetary items arising under foreign currency derivative contracts at the reporting date must be translated as follows:
The general requirements of AASB 1012 for accounting treatment of exchange differences arising on translation are:
(A foreign operation is defined in AASB 1012 as meaning an entity for which financial reports are prepared in a foreign currency, and includes branches, associates and subsidiaries).
However on incorporation of that foreign operation into the entity’s financial report (i.e. the preparation of consolidated group accounts), the translation of the financial reports of a self sustaining foreign operation as at the reporting date must be done using the current rate method (see below). Any exchange differences, together with any income tax expense (income tax revenue) must be taken directly to the foreign currency translation reserve within equity.
A self-sustaining foreign operation is defined in AASB 1012 as meaning a foreign operation that is financially and operational independent of the entity and whose operations do not normally expose the entity to foreign exchange gains and or losses.
An integrated foreign operation is defined in AASB 1012 as a foreign operation that is financially and operationally interdependent, either directly or indirectly with the entity, and whose day to day operations normally expose the entity to foreign exchange gains or losses.
Current Rate Method of Translation
(a) Assets and liabilities are translated at the spot rate at the reporting date;
(b) Equity at the date of investment, including in the case of a corporation, share capital at acquisition and pre-acquisition reserves, is translated at the exchange rate current at that date;
(c) Post-acquisition movements in equity, other than retained profits (surplus) or accumulated losses (deficiency), are translated at the exchange rates current at the dates of those movements, except that where a movement represents a transfer between items within equity or a return of equity, the movement is translated at the exchange rate current at the date that the amount transferred or returned was first included in equity;
(d) Distributions from retained profits (that is, dividends paid or proposed, or their equivalent) are translated at the exchange rates current at the dates when the distributions were first recognised; and
(e) Revenue and expense items are translated at the exchange rates current at the applicable transaction dates except that revenues and expenses that have been restated in accordance with paragraph 7.11 of AASB 1012 are translated at the spot rate at the reporting date.[1]
Temporal Method of Translation
Means a method of translating the financial report of a foreign operation whereby:
(a) (i) monetary items are translated at the spot rate at the reporting date; and
(ii) non-monetary items are translated at exchange rates current at the transaction dates or, where a non-monetary item has been revalued or written-down or the write-down has been reversed, at the exchange rate current at the date of revaluation, write-down or reversal;
(b) equity at the date of investment, including in the case of a corporation, share capital at acquisition and pre-acquisition reserves, is translated at the exchange rate current at that date;
(c) post-acquisition movements in equity, other than retained profits (surplus) or accumulated losses (deficiency), are translated at the exchange rates current at the dates of those movements, except that where a movement represents a transfer between items within equity or a return of equity, the movement is translated at the exchange rate current at the date that the amount transferred or returned was first included in equity;
(d) distributions from retained profits (that is, dividends paid or proposed, or their equivalent) are translated at the exchange rates current at the dates when the distributions were first recognised; and
(e) revenue and expense items are translated at the exchange rates current at the applicable transaction dates, except that:
(i) revenues and expenses (including depreciation) that relate to non-monetary items are translated at the rates used to translate those non-monetary items; and
(ii) revenues and expenses that have been restated in accordance with paragraph 7.11 are translated at the spot rate at the reporting date.[2]
Spot rate means the exchange rate for immediate delivery of currencies to be exchanged.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
This 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 the Reporting Requirements table.
Specific instructions
General insurers that are writers of reinsurance business must complete this form based on underwriting year while general insurers that are writers of direct insurance business must complete this form based on accident year basis. These terms are explained below.
Accident Year
This refers to the year that the losses/claims associated with individual policies are incurred. The form is to be completed for each of the following years:
Underwriting Year
Underwriting year refers to the year that the individual policy attaches and the subsequent risk associated with this policy accepted by the insurer, regardless of when the premiums and losses are actually reported, booked or paid. For example the 2001 underwriting year includes results in calendar year 2001 and all future calendar years on business bound in 2001.
Each 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.
Where possible insurers are requested to complete the entire series of years.
Classes of Insurance 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:
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)
Includes all policies normally classified as 'Fire' and includes:
Standard 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.
(VI). Marine
Includes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).
(VII). Aviation
Aviation (including aircraft hull and aircraft liability).
(VIII). Mortgage
Insurance 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.
(IX). Consumer Credit (CCI)
Insurance 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.
(X). Other Accident
Includes the following types of insurance:
(XI). Other
All other insurance business not specifically mentioned elsewhere. It includes, for example:
(XII). Compulsory Third Party Motor Vehicle (CTP)
This class consists only of CTP business.
(XIII). Public and Product Liability
(XIV). Professional Indemnity (PI)
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses general included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
The classes of business for companies that are specialist reinsurers are as follows:
(I). Facultative;
(II). Proportional; and
(III). Excess of loss.
(I). Facultative Reinsurance
The reinsurance of individual risks by offer and acceptance wherein the reinsurer has the “faculty” (option) to accept or reject each offer by the ceding company.
(II). Proportional Reinsurance
A proportional treaty is an agreement between an insurer and a reinsurer in which the reinsurer shares an identical proportion of the premiums and losses of the ceding company.
(III). Excess of Loss Reinsurance
Reinsurance which, subject to a specified limit, indemnifies the ceding company against the loss in excess of a specified retention. This type of reinsurance can involve:
Reinsurance 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 slit out all the classes of reinsurance businesses. However as required by GGN 110.3 Insurance Risk Capital Charge, where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed in Table 2 of this Guidance Note, they are to use the highest casualty factors on their outstanding claims liabilities.
Where an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, APRA suggests that the contract should be allocated using one of the following methods:
(a) allocate the contract to the category which represents the greatest exposure; or
(b) allocate the contract to the category representing the greatest premium income.
An insurer that writes 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.
(1) Premium Earned ($'000)
Premium earned is to be reported gross of reinsurance expense. Premium earned is to be reported in this form only in accordance with AASB 1023 (i.e. recognised on an earned and unearned basis).
The amount reported for Current Accident/Underwriting Year will then be the same reported for the Accident/Underwriting Year - 1Year Previous in the following financial year. For example:
| Financial Year Ended | Current Accident/Underwriting Year | Accident/Underwriting Year – 1 Year Previous | Accident/Underwriting Year - 2 Years Previous |
|---|---|---|---|
| 31 December 2001 | 4,000 | 2,000 | |
| 31 December 2002 | 5,000 | 4,000 | 2,000 |
Premium revenue is to take into account the following:
(2) Number of Claims
Report the total number of claims recorded for each class of business (total not just new claims). DO NOT include in this figure the number of claims recorded in relation to IBNRs and do not include number of claims paid.
This column is not applicable for business written under proportional treaties as this information is generally not known.
(3) Gross Claims Paid ($'000)
Report the amount of gross claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and re-insurance business. Do not adjust for reinsurance recoveries received.
(4) Reinsurance and Other Recoveries Received ($'000)
Report the amount of reinsurance and other recoveries received on claims paid attributable to each accident/underwriting year on a cumulative basis, for classes of direct written business and re-insurance business. Do not include reinsurance and other recoveries recognised on an accrual basis.
(5) Reinsurance Recoveries Receivable ($'000)
(6) Other recoveries receivable ($’000)
(7) Case Estimate - Gross Outstanding Claims Liability ($'000)
The Outstanding Claims liability is to be disclosed by type of business (direct business and inward reinsurance business). This relates to the Outstanding Claims Liability as at the end of the development year for the specified accident/underwriting year.
For the purposes of this form, the outstanding claims liability must be:
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
This 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.
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
An insurer must provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Licensed Insurer’ for each reporting period.
An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Note: 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.
(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
(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 6).
The information required by paragraphs 3 and 4 of this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.
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.
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.
If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.
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:
(a) the Principal Executive Officer of the insurer; or
(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).
(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
(b) the instructions, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
- If APRA makes such a variation it must notify general insurers in writing.
Transitional
Interpretation
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005;
approved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;
consolidated insurance group means a group comprising:
(a) an insurer that is a highest parent entity; and
(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;
foreign insurer means a foreign general insurer within the meaning of the Insurance Act;
Note: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.
highest parent entity means an insurer that satisfies all of the following conditions:
(a) it is incorporated in Australia;
(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;
Insurance Act means the Insurance Act 1973;
insurer means a general insurer within the meaning of the Insurance Act;
Note: 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.
Principal 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;
This 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.
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
An insurer must provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Licensed Insurer’ for each reporting period.
An insurer that is a highest parent entity in relation to a consolidated insurance group must also provide APRA with the information required by the version of Form GRF 440.0 designated for a ‘Consolidated Insurance Group’ for each reporting period.
(a) in electronic form, using one of the electronic submission mechanisms provided by the ‘Direct to APRA’ (also known as ‘D2A’) application; or
(b) manually completed on paper, which must be faxed or mailed to APRA’s head office.
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Note: 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.
(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
(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 6).
The information required by paragraphs 3 and 4 of this reporting standard must be provided to APRA 4 months after the end of the reporting period to which the information relates.
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.
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.
If an insurer submits information under this reporting standard using the ‘Direct to APRA’ software, it will be necessary for an officer of the insurer to digitally sign, authorise and encrypt the relevant data. For this purpose, APRA’s certificate authority will issue ‘digital certificates’, for use with the software, to officers of the insurer who have authority from the insurer to transmit the data to APRA.
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:
(a) the Principal Executive Officer of the insurer; or
(b) the Chief Financial Officer of the insurer (whatever his or her official title may be).
(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
(b) the instructions, to clarify their application to the form
without changing any substantive requirement in the form or instructions.
- If APRA makes such a variation it must notify general insurers in writing.
Transitional
Interpretation
Accounting Standard AASB 1024 means the accounting standard so designated made by the Australian Accounting Standards Board, being the accounting standard that applied in respect of reporting periods (within the meaning of the accounting standard) commencing immediately before 1 January 2005;
approved auditor means an auditor who has been approved by APRA under section 40 of the Insurance Act;
consolidated insurance group means a group comprising:
(a) an insurer that is a highest parent entity; and
(b) each subsidiary under the control (within the meaning of Accounting Standard AASB 1024) of that insurer, whether the subsidiary is incorporated in Australia or not;
foreign insurer means a foreign general insurer within the meaning of the Insurance Act;
Note: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.
highest parent entity means an insurer that satisfies all of the following conditions:
(a) it is incorporated in Australia;
(b) it has at least one subsidiary under its control (within the meaning of Accounting Standard AASB 1024); and
(c) it is not itself a subsidiary of an insurer that is incorporated in Australia;
Insurance Act means the Insurance Act 1973;
insurer means a general insurer within the meaning of the Insurance Act;
Note: 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.
Principal 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;
This 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
This is an opening excerpt, not the complete document.