Reporting Standard GRS 400 (2010) Supple
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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This Act has been repealed and is no longer in force. It is retained for historical reference.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 general insurers (including foreign branches in Australia) to submit six annual supplementary financial forms to APRA covering overseas exposure, outstanding claims movements, premium and claims by State/Territory, claims development history, and related entities. Submissions must be CEO/CFO‑authorized, lodged within four months of year‑end (electronic or paper), reported in AUD and rounded to thousands.
APRA uses the data for prudential supervision to monitor solvency, concentration risks and capital adequacy.
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Direct links to the current provisions in Financial Sector (Collection of Data) (reporting standard) determination No. 11 of 2010 - GRS 400 (2010) - Supplementary Reporting Information.
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 operating in Australia through branch operations (foreign insurers), to report to APRA, generally on an annual basis:
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or
(b) by manually completing Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 on paper and mailing the completed forms to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.
Where 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).
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
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 5).
The information required by paragraph 3 of this reporting standard must be provided to APRA within 4 months after the end of the reporting period to which the information relates.
APRA may grant an 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 specified in 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 the officer of an insurer provides the information required by this reporting standard:
(a) under subparagraph 4(a), 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
(b) under subparagraph 4(b), the completed form must be signed in accordance with paragraph 12.
(a) obtain from the agent paper copies of the completed forms as provided to APRA (under either subparagraph 4(a) or (b)); and
(b) cause the paper copies to be signed in accordance with paragraph 12; and
(c) lodge the signed paper copies 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 in relation to the insurer to lodge the signed paper copies with APRA).
Note: APRA may, for example, decide to waive the requirement under subparagraph 11(c) where an insurer has undertaken to retain the signed copies of the completed form for an agreed period of time.
(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).
- If APRA makes such a variation it must notify insurers of this in writing.
Transition
- An insurer must report in relation to a reporting period ending prior to 1 July 2010 in accordance with the reporting standards that this reporting standard replaced.
Interpretation
appointed auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act;
capital standards means the prudential standards which relate to capital adequacy as defined in Prudential Standard GPS 001 Definitions;
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.
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;
reporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.
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 operating in Australia through branch operations (foreign insurers), to report to APRA, generally on an annual basis:
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or
(b) by manually completing Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 on paper and mailing the completed forms to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.
Where 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).
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
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 5).
The information required by paragraph 3 of this reporting standard must be provided to APRA within 4 months after the end of the reporting period to which the information relates.
APRA may grant an 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 specified in 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 the officer of an insurer provides the information required by this reporting standard:
(a) under subparagraph 4(a), 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
(b) under subparagraph 4(b), the completed form must be signed in accordance with paragraph 12.
(a) obtain from the agent paper copies of the completed forms as provided to APRA (under either subparagraph 4(a) or (b)); and
(b) cause the paper copies to be signed in accordance with paragraph 12; and
(c) lodge the signed paper copies 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 in relation to the insurer to lodge the signed paper copies with APRA).
Note: APRA may, for example, decide to waive the requirement under subparagraph 11(c) where an insurer has undertaken to retain the signed copies of the completed form for an agreed period of time.
(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).
- If APRA makes such a variation it must notify insurers of this in writing.
Transition
- An insurer must report in relation to a reporting period ending prior to 1 July 2010 in accordance with the reporting standards that this reporting standard replaced.
Interpretation
appointed auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act;
capital standards means the prudential standards which relate to capital adequacy as defined in Prudential Standard GPS 001 Definitions;
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.
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;
reporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.
GRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:
premium revenue;
reinsurance expense;
claims expense;
reinsurance recoveries;
investment income;
unearned premium liability;
outstanding claims liability;
borrowings/loan capital;
deferred reinsurance expense
deferred acquisition costs; and
investments.
This form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).
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:
Basis of preparation
In completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 for translation are:
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
Reporting lag
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 Reporting Standard GRS 400.0 Statement of Risk by Country.
Specific instructions
The appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.
Premium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).
This is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.
Reinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).
Represents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.
Report the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.
Include investment income as recognised in GRF 310.0 Statement of Financial Performance.
Report the value of amounts recoverable on reinsurance contracts and outstanding claims.
Report deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.
Report deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.
Report the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).
Report the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.
Report investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.
Report the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.
Represent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.
Report unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.
The amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.
Report the carrying value of any amount borrowed.
Report the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.
Represent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.
GRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:
premium revenue;
reinsurance expense;
claims expense;
reinsurance recoveries;
investment income;
unearned premium liability;
outstanding claims liability;
borrowings/loan capital;
deferred reinsurance expense
deferred acquisition costs; and
investments.
This form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).
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:
Basis of preparation
In completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 for translation are:
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
Reporting lag
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 Reporting Standard GRS 400.0 Statement of Risk by Country.
Specific instructions
The appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.
Premium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).
This is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.
Reinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).
Represents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.
Report the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.
Include investment income as recognised in GRF 310.0 Statement of Financial Performance.
Report the value of amounts recoverable on reinsurance contracts and outstanding claims.
Report deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.
Report deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.
Report the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).
Report the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.
Report investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.
Report the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.
Represent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.
Report unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.
The amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.
Report the carrying value of any amount borrowed.
Report the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.
Represent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.
GRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:
premium revenue;
reinsurance expense;
claims expense;
reinsurance recoveries;
investment income;
unearned premium liability;
outstanding claims liability;
borrowings/loan capital;
deferred reinsurance expense
deferred acquisition costs; and
investments.
This form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).
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:
Basis of preparation
In completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 for translation are:
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
Reporting lag
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 Reporting Standard GRS 400.0 Statement of Risk by Country.
Specific instructions
The appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.
Premium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).
This is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.
Reinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).
Represents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.
Report the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.
Include investment income as recognised in GRF 310.0 Statement of Financial Performance.
Report the value of amounts recoverable on reinsurance contracts and outstanding claims.
Report deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.
Report deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.
Report the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).
Report the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.
Report investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.
Report the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.
Represent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.
Report unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.
The amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.
Report the carrying value of any amount borrowed.
Report the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.
Represent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.
GRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:
premium revenue;
reinsurance expense;
claims expense;
reinsurance recoveries;
investment income;
unearned premium liability;
outstanding claims liability;
borrowings/loan capital;
deferred reinsurance expense
deferred acquisition costs; and
investments.
This form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).
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:
Basis of preparation
In completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 for translation are:
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
Reporting lag
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 Reporting Standard GRS 400.0 Statement of Risk by Country.
Specific instructions
The appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.
Premium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).
This is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.
Reinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).
GRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:
premium revenue;
reinsurance expense;
claims expense;
reinsurance recoveries;
investment income;
unearned premium liability;
outstanding claims liability;
borrowings/loan capital;
deferred reinsurance expense
deferred acquisition costs; and
investments.
This form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).
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:
Basis of preparation
In completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 for translation are:
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
Reporting lag
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 Reporting Standard GRS 400.0 Statement of Risk by Country.
Specific instructions
The appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.
Premium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).
This is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.
Reinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).
Represents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.
Report the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.
Include investment income as recognised in GRF 310.0 Statement of Financial Performance.
Report the value of amounts recoverable on reinsurance contracts and outstanding claims.
Report deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.
Report deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.
Report the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).
Report the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.
Report investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.
Report the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.
Represent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.
Report unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.
The amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.
Report the carrying value of any amount borrowed.
Report the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.
Represent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.
Represents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.
GRF 400.0 – Statement of Risk by Country provides selected information of business written by authorised general insurers outside Australia; namely:
premium revenue;
reinsurance expense;
claims expense;
reinsurance recoveries;
investment income;
unearned premium liability;
outstanding claims liability;
borrowings/loan capital;
deferred reinsurance expense
deferred acquisition costs; and
investments.
This form only needs to be completed where the insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia as defined in this instructions set).
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:
Basis of preparation
In completing this form, unless otherwise specifically stated, insurers are recommended to adopt the measurement and recognition requirements as required by the prudential reporting framework, as appropriate (i.e. outstanding claims provision and premium liabilities).
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 for translation are:
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
Reporting lag
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 Reporting Standard GRS 400.0 Statement of Risk by Country.
Specific instructions
The appropriate information is to be reported by country or geographic region specified on the form. This is to be reported according to where the items of income/expense are on risk, assets are invested, and liabilities are located. Enter the relevant details for each country as appropriate.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). It is to be reported in respect of total direct business and inwards reinsurance business.
Premium revenue is to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (AASB 1023) (i.e. earned and unearned components).
This is the reinsurance expense as required in form GRF 310.1 Premium Revenue and Reinsurance Expense. It is to be reported in respect of total direct business and inwards reinsurance business.
Reinsurance expense is to be reported in accordance with AASB 1023 (i.e. it is to be amortised in accordance with the pattern of reinsurance service received).
Represents claims expense in relation to claim payments made in the current year and movements in the outstanding claims provision (i.e. relating to current and prior years) as recognised in GRF 310.0 Statement of Financial Performance.
Report the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.
Include investment income as recognised in GRF 310.0 Statement of Financial Performance.
Report the value of amounts recoverable on reinsurance contracts and outstanding claims.
Report deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.
Report deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.
Report the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).
Report the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.
Report investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.
Report the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.
Represent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.
Report unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.
The amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.
Report the carrying value of any amount borrowed.
Report the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.
Represent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.
Report the reinsurance recoveries that relate to claim payments made and movements in the outstanding claims provision as recognised in GRF 310.0 Statement of Financial Performance.
Include investment income as recognised in GRF 310.0 Statement of Financial Performance.
Report the value of amounts recoverable on reinsurance contracts and outstanding claims.
Report deferred acquisition costs as recognised in GRF 300.0 Statement of Financial Position.
Report deferred reinsurance expense as recognised in GRF 300.0 Statement of Financial Position.
Report the value of all other reinsurance assets (refer to instructions for GRF 301.0 Reinsurance Assets and Risk Charge).
Report the value of the investments. The total amount must reconcile with assets backing insurance liabilities (related to GRF 140 series of forms) reported as current and non-current assets in GRF 300.0 Statement of Financial Position.
Report investments that do not constitute assets backing insurance liabilities attributable to the respective countries listed. The total amount must reconcile with other investments as reported in GRF 300.0 Statement of Financial Position.
Report the value of other assets (other than those listed above) attributable to the respective countries listed in the form. The value of ‘All other assets’ must represent the remaining total assets of the reporting insurer.
Represent the total assets of the reporting insurer. This must reconcile with the total assets as reported in GRF 300.0 Statement of Financial Position.
Report unearned premium provision as recognised in item 17 ‘Unearned Premium Liability’ GRF 300.0 Statement of Financial Position.
The amount reported is to be measured in accordance with AASB 1023. The total amount must reconcile with the total amount reported at item 16 ‘Outstanding claims liability’ in GRF 300.0 Statement of Financial Position.
Report the carrying value of any amount borrowed.
Report the value of other liabilities (other than those listed above). The value of ‘Other’ must represent the remaining total liabilities of the reporting insurer.
Represent the total liabilities of the reporting insurer. This must reconcile with item 24 ‘Total liabilities’ reported in GRF 300.0 Statement of Financial Position.
The purpose of GRF 410.0 – Movement in Outstanding Claims Provision is to provide information on the following:
For insurers writing direct insurance business - for each of the following accident years:
For insurers writing reinsurance business – for each of the following 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:
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 ‘for translation are:
Foreign currency monetary items[4] outstanding at the reporting date must be translated at the spot rate[5] at the reporting date.
Foreign currency non-monetary items[6] that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.
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.
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
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 Reporting Standard GRS 410.0 Movement in Outstanding Claims Provision.
Specific instructions
Classes of Insurance Business
The classes of insurance business:
(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 XIII.
(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:
ISR
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) and 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)
PI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
The classes of business for companies that provide reinsurance are as follows:
Treaty 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.
Treaty 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.
Facultative 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.
Facultative 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.
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 GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115), where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed, 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.
The OCL is to be disclosed by type of business (direct business and inward reinsurance business), net of reinsurance and non-reinsurance recoveries, as at the reporting date.
The OCL relates to the liability provision that has been recognised by the insurer in GRF 300.0 Statement of Financial Position, however for the purposes of this form, the OCL must be undiscounted.
For the purposes of this form the total of the OCL for the current financial year (on an undiscounted basis) is to be allocated across the respective time buckets specified on the form. Accordingly, each year that this form is completed the OCL that is recorded for the respective time buckets will likely change as this is reassessed.
For the ‘Direct business’ and ‘Reinsurance’ business, amounts are to include all OCLs associated with:
Accident Year
Direct writers of insurance business are to complete this form based on accident year. This refers to the financial year that the losses/claims associated with individual policies are incurred.
Underwriting Year
Insurers writing reinsurance business are to complete this form based on underwriting year. This 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.
Reserve Release
Reserve release refers the occasions when a provision was created/posted for a particular prior financial year and subsequently it is found that this provision will be more than is required to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer releases these excess provisions and they become profits in the current financial year of the insurer.
Claim payments (that are debited out of the OCL for accounting purposes) are not to be classified as a reserve release for the purposes of this form.
Enter reserve releases as a positive figure.
Reserve Strengthening
Reserve strengthening refers the occasions when a provision has been created / posted for a particular prior financial year and subsequently it is found that this provision will be insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer strengthens or increases these provisions in the current financial year by adding additional provisions to accommodate the losses associated with this particular prior accident / underwriting year and this becomes a reduction in profit (i.e. claims expense in profit and loss in the current financial year).
Enter reserve strengthenings as a positive figure.
The purpose of GRF 410.0 – Movement in Outstanding Claims Provision is to provide information on the following:
For insurers writing direct insurance business - for each of the following accident years:
For insurers writing reinsurance business – for each of the following 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:
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 ‘for translation are:
Foreign currency monetary items[4] outstanding at the reporting date must be translated at the spot rate[5] at the reporting date.
Foreign currency non-monetary items[6] that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.
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.
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
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 Reporting Standard GRS 410.0 Movement in Outstanding Claims Provision.
Specific instructions
Classes of Insurance Business
The classes of insurance business:
(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 XIII.
(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:
ISR
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) and 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)
PI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
The classes of business for companies that provide reinsurance are as follows:
Treaty 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.
Treaty 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.
Facultative 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.
Facultative 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.
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 GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115), where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed, 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.
The OCL is to be disclosed by type of business (direct business and inward reinsurance business), net of reinsurance and non-reinsurance recoveries, as at the reporting date.
The OCL relates to the liability provision that has been recognised by the insurer in GRF 300.0 Statement of Financial Position, however for the purposes of this form, the OCL must be undiscounted.
For the purposes of this form the total of the OCL for the current financial year (on an undiscounted basis) is to be allocated across the respective time buckets specified on the form. Accordingly, each year that this form is completed the OCL that is recorded for the respective time buckets will likely change as this is reassessed.
For the ‘Direct business’ and ‘Reinsurance’ business, amounts are to include all OCLs associated with:
Accident Year
Direct writers of insurance business are to complete this form based on accident year. This refers to the financial year that the losses/claims associated with individual policies are incurred.
Underwriting Year
Insurers writing reinsurance business are to complete this form based on underwriting year. This 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.
Reserve Release
Reserve release refers the occasions when a provision was created/posted for a particular prior financial year and subsequently it is found that this provision will be more than is required to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer releases these excess provisions and they become profits in the current financial year of the insurer.
Claim payments (that are debited out of the OCL for accounting purposes) are not to be classified as a reserve release for the purposes of this form.
Enter reserve releases as a positive figure.
Reserve Strengthening
Reserve strengthening refers the occasions when a provision has been created / posted for a particular prior financial year and subsequently it is found that this provision will be insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer strengthens or increases these provisions in the current financial year by adding additional provisions to accommodate the losses associated with this particular prior accident / underwriting year and this becomes a reduction in profit (i.e. claims expense in profit and loss in the current financial year).
Enter reserve strengthenings as a positive figure.
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:
Unit of measurement
This 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’ (AASB 121).
The general requirements of AASB 121 ‘for translation are:
Foreign currency monetary items[4] outstanding at the reporting date must be translated at the spot rate[5] at the reporting date.
Foreign currency non-monetary items[6] that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.
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.
Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’ (AASB 139). However, those foreign currency derivatives that are not within the scope of AASB 139 (e.g. some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121.
For 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.
As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.
Exchange 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.
The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.
A foreign operation is defined in AASB 121 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.
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 Reporting Standard GRS 410.0 Movement in Outstanding Claims Provision.
Includes all policies normally classified as 'Fire' and includes:
ISR
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) and 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)
PI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
The classes of business for companies that provide reinsurance are as follows:
Treaty 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.
Treaty 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.
Facultative 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.
Facultative 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.
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 GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115), where an insurer writes inwards reinsurance business and is unable to split this business into the classes and types listed, 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.
The OCL is to be disclosed by type of business (direct business and inward reinsurance business), net of reinsurance and non-reinsurance recoveries, as at the reporting date.
The OCL relates to the liability provision that has been recognised by the insurer in GRF 300.0 Statement of Financial Position, however for the purposes of this form, the OCL must be undiscounted.
For the purposes of this form the total of the OCL for the current financial year (on an undiscounted basis) is to be allocated across the respective time buckets specified on the form. Accordingly, each year that this form is completed the OCL that is recorded for the respective time buckets will likely change as this is reassessed.
For the ‘Direct business’ and ‘Reinsurance’ business, amounts are to include all OCLs associated with:
Accident Year
Direct writers of insurance business are to complete this form based on accident year. This refers to the financial year that the losses/claims associated with individual policies are incurred.
Underwriting Year
Insurers writing reinsurance business are to complete this form based on underwriting year. This 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.
Reserve Release
Reserve release refers the occasions when a provision was created/posted for a particular prior financial year and subsequently it is found that this provision will be more than is required to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer releases these excess provisions and they become profits in the current financial year of the insurer.
Claim payments (that are debited out of the OCL for accounting purposes) are not to be classified as a reserve release for the purposes of this form.
Enter reserve releases as a positive figure.
Reserve Strengthening
Reserve strengthening refers the occasions when a provision has been created / posted for a particular prior financial year and subsequently it is found that this provision will be insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances the insurer strengthens or increases these provisions in the current financial year by adding additional provisions to accommodate the losses associated with this particular prior accident / underwriting year and this becomes a reduction in profit (i.e. claims expense in profit and loss in the current financial year).
Enter reserve strengthenings as a positive figure.
GRF 420.0 – Premium Revenue by State and Territory of Australia captures data required by the Australian Bureau of Statistics. Premium revenue inside Australia is to be reported by class of business for each state or territory of Australia, based on where the risk is located.
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’.
This form is to be completed by:
Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and
Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).
This form is not to be completed by authorised reinsurers.
Unit of measurement
This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.
Insurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of premium revenue in this form. Specifically, premium revenue is to be recognised as per the instructions to GRF 310.1 Premium Revenue and Reinsurance Expense.
Where the insurers operations are wholly within Australia, total premium revenue per this form should agree with the aggregate of premium revenue disclosed in GRF 310.1 Premium Revenue and Reinsurance Expense.
The amounts within GRF 310.1 Premium Revenue and Reinsurance Expense should follow the recognition and measurement requirements for premium revenue contained in AASB 1023 ‘General Insurance Contracts’ (AASB 1023).
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 Reporting Standard GRS 420.0 Premium Revenue by State and Territory of Australia.
Specific instructions
Classes of Insurance Business
The classes of insurance business 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 XIII.
(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)
Fire
Includes all policies normally classified as 'Fire' and includes:
ISR
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) and 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)
PI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
Inwards reinsurance
Include the aggregate value of all inwards reinsurance business in this line item.
Report premium revenue Inside Australia according to where the risk is located.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). Premium revenue is not to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. earned and unearned components).
Premium revenue must be reported separately for:
Premium revenue must be recognised on a basis that is consistent with the measurement of premiums liabilities as measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.
Premium revenue must be recognised in line with the following:
GRF 420.0 – Premium Revenue by State and Territory of Australia captures data required by the Australian Bureau of Statistics. Premium revenue inside Australia is to be reported by class of business for each state or territory of Australia, based on where the risk is located.
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’.
This form is to be completed by:
Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and
Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).
This form is not to be completed by authorised reinsurers.
Unit of measurement
This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.
Insurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of premium revenue in this form. Specifically, premium revenue is to be recognised as per the instructions to GRF 310.1 Premium Revenue and Reinsurance Expense.
Where the insurers operations are wholly within Australia, total premium revenue per this form should agree with the aggregate of premium revenue disclosed in GRF 310.1 Premium Revenue and Reinsurance Expense.
The amounts within GRF 310.1 Premium Revenue and Reinsurance Expense should follow the recognition and measurement requirements for premium revenue contained in AASB 1023 ‘General Insurance Contracts’ (AASB 1023).
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 Reporting Standard GRS 420.0 Premium Revenue by State and Territory of Australia.
Specific instructions
Classes of Insurance Business
The classes of insurance business 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 XIII.
(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)
Fire
Includes all policies normally classified as 'Fire' and includes:
ISR
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) and 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)
PI covers professionals against liability incurred as a result of errors and omissions in performing professional services which has resulted in economic losses suffered by third parties.
Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.
(XV). Employers' Liability (EL)
Includes:
Inwards reinsurance
Include the aggregate value of all inwards reinsurance business in this line item.
Report premium revenue Inside Australia according to where the risk is located.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). Premium revenue is not to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. earned and unearned components).
Premium revenue must be reported separately for:
Premium revenue must be recognised on a basis that is consistent with the measurement of premiums liabilities as measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.
Premium revenue must be recognised in line with the following:
This form is to be completed by:
Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations); and
Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity).
This form is not to be completed by authorised reinsurers.
Unit of measurement
This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place.
Insurers are requested to follow the recognition and measurement basis required by the APRA forms for the reporting of premium revenue in this form. Specifically, premium revenue is to be recognised as per the instructions to GRF 310.1 Premium Revenue and Reinsurance Expense.
Where the insurers operations are wholly within Australia, total premium revenue per this form should agree with the aggregate of premium revenue disclosed in GRF 310.1 Premium Revenue and Reinsurance Expense.
The amounts within GRF 310.1 Premium Revenue and Reinsurance Expense should follow the recognition and measurement requirements for premium revenue contained in AASB 1023 ‘General Insurance Contracts’ (AASB 1023).
Reporting period
Insurers are required to report the information in the reporting form on an annual basis.
Report premium revenue Inside Australia according to where the risk is located.
This is the premium revenue as required by the APRA forms (refer to instructions GRF 310.1 Premium Revenue and Reinsurance Expense). Premium revenue is not to be reported in accordance with AASB 1023 ‘General Insurance Contracts’ (i.e. earned and unearned components).
Premium revenue must be reported separately for:
Premium revenue must be recognised on a basis that is consistent with the measurement of premiums liabilities as measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.
Premium revenue must be recognised in line with the following:
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 operating in Australia through branch operations (foreign insurers), to report to APRA, generally on an annual basis:
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or
(b) by manually completing Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 on paper and mailing the completed forms to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.
Where 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).
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
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 5).
The information required by paragraph 3 of this reporting standard must be provided to APRA within 4 months after the end of the reporting period to which the information relates.
APRA may grant an 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 specified in 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 the officer of an insurer provides the information required by this reporting standard:
(a) under subparagraph 4(a), 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
(b) under subparagraph 4(b), the completed form must be signed in accordance with paragraph 12.
(a) obtain from the agent paper copies of the completed forms as provided to APRA (under either subparagraph 4(a) or (b)); and
(b) cause the paper copies to be signed in accordance with paragraph 12; and
(c) lodge the signed paper copies 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 in relation to the insurer to lodge the signed paper copies with APRA).
Note: APRA may, for example, decide to waive the requirement under subparagraph 11(c) where an insurer has undertaken to retain the signed copies of the completed form for an agreed period of time.
(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).
- If APRA makes such a variation it must notify insurers of this in writing.
Transition
- An insurer must report in relation to a reporting period ending prior to 1 July 2010 in accordance with the reporting standards that this reporting standard replaced.
Interpretation
appointed auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act;
capital standards means the prudential standards which relate to capital adequacy as defined in Prudential Standard GPS 001 Definitions;
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.
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;
reporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 6.
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 operating in Australia through branch operations (foreign insurers), to report to APRA, generally on an annual basis:
This reporting standard outlines the overall requirements for the provision of this information to APRA. It should be read in conjunction with:
(a) in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or
(b) by manually completing Forms GRF 400.0, GRF 410.0, GRF 420.0, GRF 430.0, GRF 440.0 and GRF 450.0 on paper and mailing the completed forms to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.
Where 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).
Note: the Direct to APRA application software and paper forms may be obtained from APRA.
Reporting periods and due dates
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 5).
The information required by paragraph 3 of this reporting standard must be provided to APRA within 4 months after the end of the reporting period to which the information relates.
APRA may grant an 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 specified in 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 the officer of an insurer provides the information required by this reporting standard:
(a) under subparagraph 4(a), 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);
This is an opening excerpt, not the complete document.