Financial Sector (Collection of Data) (reporting standard) determination No. 103 of 2013 - GRS 460.0_G - Reinsurance Assets by Counterparty (Level 2 Insurance Group)

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Financial Sector (Collection of Data) (reporting standard) determination No. 103 of 2013

Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group)

Financial Sector (Collection of Data) Act 2001

I, Charles Littrell, delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) DETERMINE Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group), in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities on 31 December 2013.

This instrument commences on 31 December 2013.

Dated: 13 December 2013

[Signed]

Charles Littrell

Executive General Manager

Policy, Statistics and International

Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given in section 5 of the Act.

Schedule

Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group) comprises the 11 pages commencing on the following page.

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Reporting Standard GRS 460.0_G

Reinsurance Assets by Counterparty (Level 2 Insurance Group)

Objective of this Reporting Standard

This Reporting Standard sets out the requirements for the provision of information to APRA relating to a Level 2 insurance group’s exposures to reinsurance counterparties.

It includes Form GRF 460.0_G Reinsurance Assets by Counterparty (G) and associated specific instructions and must be read in conjunction with the general instruction guide.

Authority

1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2. Information collected in Form GRF 460.0_G Reinsurance Assets by Counterparty (G) (GRF 460.0_G) is used by APRA for the purposes of prudential supervision.

Application and commencement

3. This Reporting Standard applies to the parent entity of a Level 2 insurance group as defined in Prudential Standard GPS 001 Definitions (GPS 001).

4. This Reporting Standard applies for reporting periods ending on or after 31 December 2013.

5. The parent entity of a Level 2 insurance group is required to ensure that each requirement in this Reporting Standard is complied with.

Information required

6. The parent entity of a Level 2 insurance group must provide APRA with the information required by GRF 460.0_G in respect of the Level 2 insurance group for each reporting period.

Forms and method of submission

7. The information required by this Reporting Standard must be given to APRA in electronic format using the ‘Direct to APRA’ application or, where ‘Direct to APRA’ is not available, by a method notified by APRA prior to submission.

Note: the ‘Direct to APRA’ application software (also known as ‘D2A’) may be obtained from APRA.

Reporting periods and due dates

8. Subject to paragraph 9, the parent entity of a Level 2 insurance group must provide the information required by this Reporting Standard in respect of each financial year of the Level 2 insurance group.

9. If, having regard to the particular circumstances of a Level 2 insurance group, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by paragraph 8, APRA may change the reporting periods, or specify reporting periods, for the particular Level 2 insurance group.

10. The information required by this Reporting Standard must be provided to APRA:

(a) within the time stated in Reporting Standard GRS 001 Reporting Requirements (GRS 001); or

(b) in the case of information provided in accordance with paragraph 9, within the time specified by APRA.

11. APRA may grant the parent entity of a Level 2 insurance group an extension of a due date, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

12. All information provided by the parent entity of a Level 2 insurance group under this Reporting Standard must be subject to systems, processes and controls developed by the Level 2 insurance group for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the parent entity of the Level 2 insurance group to ensure that an appropriate set of policies and procedures for the authorisation of information submitted to APRA is in place.

13. Under Prudential Standard GPS 310 Audit and Related Matters (GPS 310), the Group Auditor of a Level 2 insurance group is not ordinarily required to provide a limited assurance review in relation to information provided by the parent entity of the Level 2 insurance group under this Reporting Standard.

Authorisation

14. When an officer or agent of the parent entity of a Level 2 insurance group provides the information required by this Reporting Standard using the ‘Direct to APRA’ software, it will be necessary for the officer or agent to digitally sign the relevant information using a digital certificate acceptable to APRA.

15. If the information required by this Reporting Standard is provided by an agent who submits using the ‘Direct to APRA’ software on the parent entity’s behalf, the parent entity of the Level 2 insurance group must:

(a) obtain from the agent a copy of the completed form with the information provided to APRA; and

(b) retain the completed copy.

16. An officer or agent of the parent entity of a Level 2 insurance group who submits the information under this Reporting Standard for, or on behalf of, the parent entity of the Level 2 insurance group must be authorised by either:

(a) the Principal Executive Officer of the parent entity of the Level 2 insurance group; or

(b) the Chief Financial Officer of the parent entity of the Level 2 insurance group.

Variations

17. APRA may vary the reporting requirements of GRF 460.0_G in relation to a Level 2 insurance group.

Interpretation

18. In this Reporting Standard:

(a) unless the contrary intention appears, words and expressions have the meanings given to them in GPS 001; and

(b) APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;

Chief Financial Officer means the chief financial officer of the parent entity of the Level 2 insurance group, by whatever name called;

financial year means the financial year (within the meaning in the Corporations Act 2001) of the parent entity of the Level 2 insurance group;

general instruction guide refers to the general instruction guide set out in Attachment A of GRS 001;

Group Auditor has the meaning given in GPS 310;

Principal Executive Officer means the principal executive officer of the parent entity of the Level 2 insurance group, by whatever name called, and whether or not he or she is a member of the governing board of the parent entity of the Level 2 insurance group; and

reporting period means a period mentioned in paragraph 8 or, if applicable, paragraph 9.

19. Where this Reporting Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

Reporting Form GRF 460.0_G

Reinsurance Assets by Counterparty (G)

Instructions

These instructions assist completion of Reporting Form GRF 460.0_G Reinsurance Assets by Counterparty (GRF 460.0_G). GRF 460.0_G collects information relating to a regulated institution’s exposure to individual reinsurance counterparties. Information reported in GRF 460.0_G is primarily required for prudential purposes.

These instructions must be read in conjunction with the general instruction guide.

Audit matters

As a result of Insurance (exemption) determination No. 2 of 2013, the Appointed Auditor of a general insurer is not required to audit, or provide a certificate in relation to, information provided by the general insurer under Reporting Standard GRS 460.0 Reinsurance Assets by Counterparty. Under Prudential Standard GPS 310 Audit and Related Matters (GPS 310), the Group Auditor of a Level 2 insurance group is not required to provide a limited assurance review in relation to information provided by the parent entity of the Level 2 insurance group under Reporting Standard GRS 460.0_G Reinsurance Assets by Counterparty (Level 2 Insurance Group). APRA, however, may exercise its power under GPS 310 to require the Appointed Auditor or Group Auditor to undertake a special purpose review of the systems, processes and controls surrounding the completion of Reporting Form GRF 460.0 Reinsurance Assets by Counterparty (GRF 460.0) and GRF 460.0_G, or the data contained within GRF 460.0 and GRF 460.0_G.

Reporting Level

GRF 460.0_G must be completed by all Level 2 insurance groups.

Specific instructions

Terms highlighted in bold italics indicate that the definition is provided in these instructions. Additional definitions are provided at the end of these instructions.

Reporting Practice Guide GRPG 460 Reinsurance Counterparty Data Collection provides guidance to assist regulated institutions in completing GRF 460.0_G.

Reinsurance assets by counterparty

For the purposes of GRF 460.0_G, it is acceptable for a regulated institution to report less than 100 per cent of the regulated institution’s total exposure to individual reinsurance counterparties. However, at a minimum, the regulated institution must report exposures to individual reinsurance counterparties such that the aggregate of the amount reported on the reporting form represents at least 95 per cent of the sum of the regulated institution’s total central estimate of reinsurance recoverables (including recoverables on paid claims overdue for more than six months and recoverables outstanding from the second annual balance date after the event) and deferred reinsurance expense.

Regulated institutions are only to include reinsurance recoverables on GRF 460.0_G that are classed as reinsurance on Reporting Form GRF 300.0 Statement of Financial Position or Reporting Form GRF 300.0_G Statement of Financial Position (G).

Reporting basis: report balances for Column 6 and Columns 10 to 13 as at the end of the financial year.

Unit of measurement: report amounts in Column 6 and Columns 10 to 13 as thousands of dollars.

Glossary of additional terms

Interpretation

For the purposes of these instructions:

• Appointed Auditor is defined in GPS 001;
• general insurer means a general insurer authorised under the Insurance Act 1973;
• Group Auditor is defined in GPS 001;
• regulated institution is defined in GPS 001 as a collective term for general insurers and Level 2 insurance groups; and
• Level 2 insurance group is defined in Attachment D of GPS 001.

Appendix 1: Country list

The following country list must be used when reporting any values for columns 8 and 9.

If the country cannot be identified, report the relevant ‘residual’ region listed in the table (for example, US Pacific Islands). If the residual region cannot be identified, report ‘unallocated’.