Financial Sector (Collection of Data) (reporting standard) determination No. 111 of 2023
In ForceCTH
Jurisdiction
Commonwealth
Collection
legislative instrument
Plain English Summary
6/10 complexity
This instrument sets out how life insurance companies (including friendly societies) must prepare and lodge APRA returns: what to report, the timing for quarterly/half‑yearly/annual returns, and the accounting and actuarial bases to use (paras 3–5, 3.1–3.4). It requires insurers to follow APRA product‑group classifications, document allocation approaches for AASB 17 items, and meet audit and valuation standards, creating defined compliance, documentation and actuarial judgement tasks for reporting entities (sections 4, 5, 6, Attachment A).
This Reporting Standard (LRS 001) sets out general instructions for life insurance sector reporting to the Australian Prudential Regulation Authority (APRA). The instrument is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (s 1). Its stated purpose is to provide the instructions applicable to life insurance reporting standards and to specify the periods within which reporting entities must comply (s 2). The Standard expressly applies to all life insurance companies, including friendly societies, registered under the Life Insurance Act 1995, and it applies to reporting periods ending on or after 1 July 2023 (s 3).
Mechanically, LRS 001 does the following, as set out in the text:
Establishes the legal basis and scope for life insurance reporting to APRA (s 1-3).
Directs reporters to consider specific reporting-item instructions together with the General Instruction Guide (Attachment A) and relevant prudential standards (s 4).
Fixes lodgement timeframes: quarterly and half-yearly returns are due 20 business days after the period end; annual returns are due three months after the period end (s 5). APRA may grant written extensions (s 6).
Preserves the previous version of LRS 001 for transitional reporting periods that ended before 1 July 2023 where an insurer remained required to report by a date falling on or after revocation (s 7).
Defines key terms for interpretation, including references to Australian Accounting Standards Board materials, and confirms that references to Acts and Prudential Standards should be read as instruments in force from time to time (s 8-9).
Attachment A, the General Instruction Guide, operationalises the Standard by prescribing the basis of preparation, reporting levels, actuarial valuation basis, fair value approach, units of measurement, audit requirements, APRA product group classifications, and principles for allocating AASB 17 items to APRA product groups. It cross‑references several prudential standards: LPS 340 for policy liabilities, LPS 112 for capital measurement, LPS 310 for audit requirements, and CPS 320 for the role of the Appointed Actuary. The Guide contains concrete measurement rules such as whole Australian dollar reporting, ratios to two decimal places, and foreign currency conversion under AASB 121.
Current sections
Direct links to the current provisions in Financial Sector (Collection of Data) (reporting standard) determination No. 111 of 2023.
This Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.
Authority
This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.
Application and Commencement
This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.
General Instructions
Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.
Periods for Provision of Returns
A life company is to provide information required under reporting standards:
(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;
(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and
(c) in the case of annual information - three months after the end of the reporting period to which the information relates.
APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.
Transition
The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:
old LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;
old reporting standard means a reporting standard which has been revoked; and
transitional reporting period means a reporting period:
(a) which ended before 1 July 2023; and
(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.
Interpretation
In this reporting standard:
AASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;
annual information means information required to be provided in respect of each financial year of a life company;
financial year has the meaning in the Corporations Act 2001;
half yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and
quarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.
Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
This Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.
Authority
This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.
Application and Commencement
This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.
General Instructions
Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.
Periods for Provision of Returns
A life company is to provide information required under reporting standards:
(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;
(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and
(c) in the case of annual information - three months after the end of the reporting period to which the information relates.
APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.
Transition
The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:
old LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;
old reporting standard means a reporting standard which has been revoked; and
transitional reporting period means a reporting period:
(a) which ended before 1 July 2023; and
(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.
Interpretation
In this reporting standard:
AASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;
annual information means information required to be provided in respect of each financial year of a life company;
financial year has the meaning in the Corporations Act 2001;
half yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and
quarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.
Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
Objective of this Reporting Standard
Objective of this Reporting Standard
Objective of this Reporting Standard
This Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.
Authority
This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.
Application and Commencement
This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.
General Instructions
Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.
Periods for Provision of Returns
A life company is to provide information required under reporting standards:
(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;
(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and
(c) in the case of annual information - three months after the end of the reporting period to which the information relates.
APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.
Transition
The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:
old LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;
old reporting standard means a reporting standard which has been revoked; and
transitional reporting period means a reporting period:
(a) which ended before 1 July 2023; and
(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.
Interpretation
In this reporting standard:
AASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;
annual information means information required to be provided in respect of each financial year of a life company;
financial year has the meaning in the Corporations Act 2001;
half yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and
quarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.
Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
Life Insurance Reporting Requirements
Life Insurance Reporting Requirements
ATTACHMENT A
Life Insurance Reporting Requirements
General Instruction Guide
1. Introduction
The General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.
Detailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[1].
This General Instruction Guide covers all the reporting standards for life companies.
2. Reporting level
This section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:
Each statutory fund for a life insurer and each approved benefit fund for a friendly society;
The shareholder fund for a life insurer and the management fund for a friendly society; and
The life company (i.e. company as whole for both life insurers & friendly societies).
3. Basis of preparation
3.1. Year to date
The financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.
3.2. General accounting basis
In completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.
3.3. Actuarial valuation basis
All actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).
APRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.
3.4. Fair value approach
For capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
For accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.
3.5. Units of measurement
Unless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.
3.6. Definitions
Definitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.
Definitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.
Additionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.
3.7. Related parties
Where this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.
4. Audit requirements
The reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.
5. APRA Product Group classification
For consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.
The following tables specify the product groups applicable to life insurers and friendly societies.
5.1. Life insurers
The following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.
Within the relevant reporting standard, APRA has listed the product groups that apply.
Ref.
Product Group
Notes
L1
Conventional
Includes whole of life policies and endowment policies.
L2
Annuity with longevity risk
Annuities providing periodic payments that are dependent on the continuance of human life.
L3
Individual death – Stepped premium
Death benefit within policies issued on an individual basis with stepped premium.
L3_1
Individual lump sum risk – Stepped premium
Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L4
Individual TPD – Stepped premium
TPD benefit within policies issued on an individual basis with stepped premium.
L5
Individual trauma – Stepped premium
Trauma benefit within policies issued on an individual basis with stepped premium
L6
Individual disability income insurance – Stepped premium
Disability income insurance benefit within policies issued on an individual basis with stepped premium.
L7
Individual death – Other
Death benefit within policies issued on an individual basis with non-stepped premium.
L7_1
Individual lump sum risk – Other
Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L8
Individual TPD – Other
TPD benefit within policies issued on an individual basis with non-stepped premium.
L9
Individual trauma – Other
Trauma benefit within policies issued on an individual basis with non-stepped premium
L10
Individual disability income insurance – Other
Disability income insurance benefit within policies issued on an individual basis with non-stepped premium.
L11
Group death
Death benefit within policies issued on a group (wholesale) basis.
L11_1
Group lump sum risk
Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits.
L12
Group TPD
TPD benefit within policies issued on a group (wholesale) basis.
L13
Group trauma
Trauma benefit within policies issued on a group (wholesale) basis.
L14
Group disability income insurance
Disability income insurance benefit within policies issued on a group (wholesale) basis.
L15
Investment linked
Investment linked policies where policy benefits are associated with the performance of the supporting assets.
L16
Investment policy with discretionary additions
Investment account business within the meaning of section 14 of the Life Act.
L17
Other investment policy
Includes all other investment policies not specifically categories in L15 and L16.
L18
Annuity without longevity risk
Annuities providing periodic payments that are not dependent on the continuance of human life.
L19
Other
Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand.
Refer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.
Refer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.
Stepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.
5.2. Friendly Societies
Ref.
Product Group
Notes
F1
Education
F2
Investment Account
As defined in section 14 of the Life Insurance Act 1995.
F3
Annuity and Superannuation
F4
Defined Benefit Risk
All products classified as defined benefit, including defined benefit funeral products
F5
Capital Guaranteed Defined Contribution Funeral
Capital guaranteed funeral products that are classified as Defined Contribution.
F6
Investment Linked
As defined in section 14 of the Life Insurance Act 1995.
F7
Unallocated Benefit Fund Reserve
Value of benefit funds which has not been allocated to either the benefit fund members or to management fund.
F8
Members’ Capital and Retained Profits
Members’ capital and retained profits allocated to members.
The classification of participating and non-participating benefits does not apply to friendly societies.
6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)
Life insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.
Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.
Principle 2: A systematic and rational approach must be applied.
Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.
Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.
Principle 5: A single allocation approach need not necessarily be applied.
Allocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.
For clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).
General Instruction Guide
General Instruction Guide
ATTACHMENT A
Life Insurance Reporting Requirements
General Instruction Guide
1. Introduction
The General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.
Detailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[1].
This General Instruction Guide covers all the reporting standards for life companies.
2. Reporting level
This section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:
Each statutory fund for a life insurer and each approved benefit fund for a friendly society;
The shareholder fund for a life insurer and the management fund for a friendly society; and
The life company (i.e. company as whole for both life insurers & friendly societies).
3. Basis of preparation
3.1. Year to date
The financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.
3.2. General accounting basis
In completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.
3.3. Actuarial valuation basis
All actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).
APRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.
3.4. Fair value approach
For capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
For accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.
3.5. Units of measurement
Unless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.
3.6. Definitions
Definitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.
Definitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.
Additionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.
3.7. Related parties
Where this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.
4. Audit requirements
The reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.
5. APRA Product Group classification
For consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.
The following tables specify the product groups applicable to life insurers and friendly societies.
5.1. Life insurers
The following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.
Within the relevant reporting standard, APRA has listed the product groups that apply.
Ref.
Product Group
Notes
L1
Conventional
Includes whole of life policies and endowment policies.
L2
Annuity with longevity risk
Annuities providing periodic payments that are dependent on the continuance of human life.
L3
Individual death – Stepped premium
Death benefit within policies issued on an individual basis with stepped premium.
L3_1
Individual lump sum risk – Stepped premium
Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L4
Individual TPD – Stepped premium
TPD benefit within policies issued on an individual basis with stepped premium.
L5
Individual trauma – Stepped premium
Trauma benefit within policies issued on an individual basis with stepped premium
L6
Individual disability income insurance – Stepped premium
Disability income insurance benefit within policies issued on an individual basis with stepped premium.
L7
Individual death – Other
Death benefit within policies issued on an individual basis with non-stepped premium.
L7_1
Individual lump sum risk – Other
Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L8
Individual TPD – Other
TPD benefit within policies issued on an individual basis with non-stepped premium.
L9
Individual trauma – Other
Trauma benefit within policies issued on an individual basis with non-stepped premium
L10
Individual disability income insurance – Other
Disability income insurance benefit within policies issued on an individual basis with non-stepped premium.
L11
Group death
Death benefit within policies issued on a group (wholesale) basis.
L11_1
Group lump sum risk
Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits.
L12
Group TPD
TPD benefit within policies issued on a group (wholesale) basis.
L13
Group trauma
Trauma benefit within policies issued on a group (wholesale) basis.
L14
Group disability income insurance
Disability income insurance benefit within policies issued on a group (wholesale) basis.
L15
Investment linked
Investment linked policies where policy benefits are associated with the performance of the supporting assets.
L16
Investment policy with discretionary additions
Investment account business within the meaning of section 14 of the Life Act.
L17
Other investment policy
Includes all other investment policies not specifically categories in L15 and L16.
L18
Annuity without longevity risk
Annuities providing periodic payments that are not dependent on the continuance of human life.
L19
Other
Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand.
Refer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.
Refer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.
Stepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.
5.2. Friendly Societies
Ref.
Product Group
Notes
F1
Education
F2
Investment Account
As defined in section 14 of the Life Insurance Act 1995.
F3
Annuity and Superannuation
F4
Defined Benefit Risk
All products classified as defined benefit, including defined benefit funeral products
F5
Capital Guaranteed Defined Contribution Funeral
Capital guaranteed funeral products that are classified as Defined Contribution.
F6
Investment Linked
As defined in section 14 of the Life Insurance Act 1995.
F7
Unallocated Benefit Fund Reserve
Value of benefit funds which has not been allocated to either the benefit fund members or to management fund.
F8
Members’ Capital and Retained Profits
Members’ capital and retained profits allocated to members.
The classification of participating and non-participating benefits does not apply to friendly societies.
6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)
Life insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.
Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.
Principle 2: A systematic and rational approach must be applied.
Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.
Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.
Principle 5: A single allocation approach need not necessarily be applied.
Allocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.
For clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).
1. Introduction
1. Introduction
1. Introduction
The General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.
Detailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[1].
This General Instruction Guide covers all the reporting standards for life companies.
2. Reporting level
2. Reporting level
2. Reporting level
This section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:
Each statutory fund for a life insurer and each approved benefit fund for a friendly society;
The shareholder fund for a life insurer and the management fund for a friendly society; and
The life company (i.e. company as whole for both life insurers & friendly societies).
3. Basis of preparation
3. Basis of preparation
ATTACHMENT A
Life Insurance Reporting Requirements
General Instruction Guide
1. Introduction
The General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.
Detailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[1].
This General Instruction Guide covers all the reporting standards for life companies.
2. Reporting level
This section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:
Each statutory fund for a life insurer and each approved benefit fund for a friendly society;
The shareholder fund for a life insurer and the management fund for a friendly society; and
The life company (i.e. company as whole for both life insurers & friendly societies).
3. Basis of preparation
3.1. Year to date
The financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.
3.2. General accounting basis
In completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.
3.3. Actuarial valuation basis
All actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).
APRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.
3.4. Fair value approach
For capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
For accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.
3.5. Units of measurement
Unless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.
3.6. Definitions
Definitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.
Definitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.
Additionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.
3.7. Related parties
Where this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.
4. Audit requirements
The reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.
5. APRA Product Group classification
For consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.
The following tables specify the product groups applicable to life insurers and friendly societies.
5.1. Life insurers
The following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.
Within the relevant reporting standard, APRA has listed the product groups that apply.
Ref.
Product Group
Notes
L1
Conventional
Includes whole of life policies and endowment policies.
L2
Annuity with longevity risk
Annuities providing periodic payments that are dependent on the continuance of human life.
L3
Individual death – Stepped premium
Death benefit within policies issued on an individual basis with stepped premium.
L3_1
Individual lump sum risk – Stepped premium
Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L4
Individual TPD – Stepped premium
TPD benefit within policies issued on an individual basis with stepped premium.
L5
Individual trauma – Stepped premium
Trauma benefit within policies issued on an individual basis with stepped premium
L6
Individual disability income insurance – Stepped premium
Disability income insurance benefit within policies issued on an individual basis with stepped premium.
L7
Individual death – Other
Death benefit within policies issued on an individual basis with non-stepped premium.
L7_1
Individual lump sum risk – Other
Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L8
Individual TPD – Other
TPD benefit within policies issued on an individual basis with non-stepped premium.
L9
Individual trauma – Other
Trauma benefit within policies issued on an individual basis with non-stepped premium
L10
Individual disability income insurance – Other
Disability income insurance benefit within policies issued on an individual basis with non-stepped premium.
L11
Group death
Death benefit within policies issued on a group (wholesale) basis.
L11_1
Group lump sum risk
Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits.
L12
Group TPD
TPD benefit within policies issued on a group (wholesale) basis.
L13
Group trauma
Trauma benefit within policies issued on a group (wholesale) basis.
L14
Group disability income insurance
Disability income insurance benefit within policies issued on a group (wholesale) basis.
L15
Investment linked
Investment linked policies where policy benefits are associated with the performance of the supporting assets.
L16
Investment policy with discretionary additions
Investment account business within the meaning of section 14 of the Life Act.
L17
Other investment policy
Includes all other investment policies not specifically categories in L15 and L16.
L18
Annuity without longevity risk
Annuities providing periodic payments that are not dependent on the continuance of human life.
L19
Other
Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand.
Refer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.
Refer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.
Stepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.
5.2. Friendly Societies
Ref.
Product Group
Notes
F1
Education
F2
Investment Account
As defined in section 14 of the Life Insurance Act 1995.
F3
Annuity and Superannuation
F4
Defined Benefit Risk
All products classified as defined benefit, including defined benefit funeral products
F5
Capital Guaranteed Defined Contribution Funeral
Capital guaranteed funeral products that are classified as Defined Contribution.
F6
Investment Linked
As defined in section 14 of the Life Insurance Act 1995.
F7
Unallocated Benefit Fund Reserve
Value of benefit funds which has not been allocated to either the benefit fund members or to management fund.
F8
Members’ Capital and Retained Profits
Members’ capital and retained profits allocated to members.
The classification of participating and non-participating benefits does not apply to friendly societies.
6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)
Life insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.
Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.
Principle 2: A systematic and rational approach must be applied.
Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.
Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.
Principle 5: A single allocation approach need not necessarily be applied.
Allocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.
For clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).
3.1. Year to date
3.1. Year to date
3.1. Year to date
The financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.
3.2. General accounting basis
3.2. General accounting basis
3.2. General accounting basis
In completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.
3.3. Actuarial valuation basis
3.3. Actuarial valuation basis
3.3. Actuarial valuation basis
All actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).
APRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.
3.4. Fair value approach
3.4. Fair value approach
3.4. Fair value approach
For capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
For accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.
3.5. Units of measurement
3.5. Units of measurement
3.5. Units of measurement
Unless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.
3.6. Definitions
3.6. Definitions
3.6. Definitions
Definitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.
Definitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.
Additionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.
3.7. Related parties
3.7. Related parties
3.7. Related parties
Where this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.
4. Audit requirements
4. Audit requirements
4. Audit requirements
The reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.
5. APRA Product Group classification
5. APRA Product Group classification
5. APRA Product Group classification
For consistency of reporting across the range of reporting standards applicable to life companies, APRA adopts a single set of product groupings for life insurers and friendly societies. The appropriate APRA product groups must be used in accordance with the specific reporting standard.
The following tables specify the product groups applicable to life insurers and friendly societies.
5.1. Life insurers
5.1. Life insurers
5.1. Life insurers
The following product groups fall under participating and non-participating benefits. The expressions ‘participating benefits’ and ‘non-participating benefits’ are defined in the Life Act.
Within the relevant reporting standard, APRA has listed the product groups that apply.
Ref.
Product Group
Notes
L1
Conventional
Includes whole of life policies and endowment policies.
L2
Annuity with longevity risk
Annuities providing periodic payments that are dependent on the continuance of human life.
L3
Individual death – Stepped premium
Death benefit within policies issued on an individual basis with stepped premium.
L3_1
Individual lump sum risk – Stepped premium
Lump sum benefit within policies issued on an individual basis with stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L4
Individual TPD – Stepped premium
TPD benefit within policies issued on an individual basis with stepped premium.
L5
Individual trauma – Stepped premium
Trauma benefit within policies issued on an individual basis with stepped premium
L6
Individual disability income insurance – Stepped premium
Disability income insurance benefit within policies issued on an individual basis with stepped premium.
L7
Individual death – Other
Death benefit within policies issued on an individual basis with non-stepped premium.
L7_1
Individual lump sum risk – Other
Lump sum benefit within policies issued on an individual basis with non-stepped premium. Lump sum benefit includes death, TPD and trauma benefits.
L8
Individual TPD – Other
TPD benefit within policies issued on an individual basis with non-stepped premium.
L9
Individual trauma – Other
Trauma benefit within policies issued on an individual basis with non-stepped premium
L10
Individual disability income insurance – Other
Disability income insurance benefit within policies issued on an individual basis with non-stepped premium.
L11
Group death
Death benefit within policies issued on a group (wholesale) basis.
L11_1
Group lump sum risk
Lump sum benefit within policies issued on a group (wholesale) basis. Lump sum benefit includes death, TPD and trauma benefits.
L12
Group TPD
TPD benefit within policies issued on a group (wholesale) basis.
L13
Group trauma
Trauma benefit within policies issued on a group (wholesale) basis.
L14
Group disability income insurance
Disability income insurance benefit within policies issued on a group (wholesale) basis.
L15
Investment linked
Investment linked policies where policy benefits are associated with the performance of the supporting assets.
L16
Investment policy with discretionary additions
Investment account business within the meaning of section 14 of the Life Act.
L17
Other investment policy
Includes all other investment policies not specifically categories in L15 and L16.
L18
Annuity without longevity risk
Annuities providing periodic payments that are not dependent on the continuance of human life.
L19
Other
Includes all other policies not specifically categories above. However, do not use this Product Group unless APRA has been consulted beforehand.
Refer to Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0) for the definitions of ‘Death’, ‘TPD’, ‘Trauma’ and ‘DII’.
Refer to LRS 750.0 for the definitions of ‘Group’ and ‘Individual’.
Stepped premium policies are the policies where premiums increase each year according to risk factors (i.e. age). Other individual policies are the individual policies that are not stepped premium policies (e.g. level premium policies and hybrid stepped premium policies). For a reinsurer, determination of whether the premium structure of a reinsurance contract issued is stepped or non-stepped must be based on the premium structure of the treaty, and not based on the premium structure of the underlying risks written by the cedants.
5.2. Friendly Societies
5.2. Friendly Societies
5.2. Friendly Societies
Ref.
Product Group
Notes
F1
Education
F2
Investment Account
As defined in section 14 of the Life Insurance Act 1995.
F3
Annuity and Superannuation
F4
Defined Benefit Risk
All products classified as defined benefit, including defined benefit funeral products
F5
Capital Guaranteed Defined Contribution Funeral
Capital guaranteed funeral products that are classified as Defined Contribution.
F6
Investment Linked
As defined in section 14 of the Life Insurance Act 1995.
F7
Unallocated Benefit Fund Reserve
Value of benefit funds which has not been allocated to either the benefit fund members or to management fund.
F8
Members’ Capital and Retained Profits
Members’ capital and retained profits allocated to members.
The classification of participating and non-participating benefits does not apply to friendly societies.
6. Principles for allocating AASB 17 Ins
6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)
6. Principles for allocating AASB 17 Insurance Contracts (AASB 17) numbers to APRA product groups (life insurers)
Life insurers are to apply the allocation principles (outlined below) to allocate AASB 17 numbers to APRA product groups (outlined under section 5) where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA product groups.
Principle 1: To the extent that AASB 17 balance sheet and income statement items can be readily allocated to APRA product groups, they must be so allocated. Otherwise, the items (including CSM and / or loss component) are to be allocated using allocation approaches. The allocation approaches are to reflect allocation drivers determined based on accounting and / or actuarial judgments. For example, an insurer may decide to determine annual premium income and / or expected claims to be the allocation drivers to allocate AASB 17 items using proportions and / or ratios.
Principle 2: A systematic and rational approach must be applied.
Principle 3: The approach must be consistent over time. However, an insurer may change the approach if it views that the approach is no longer appropriate based on accounting and / or actuarial judgements.
Principle 4: The aggregate of the allocated numbers across APRA product groups must be consistent with AASB 17 numbers reported on a statutory basis.
Principle 5: A single allocation approach need not necessarily be applied.
Allocation approaches and allocation drivers must be clearly documented. This would support clarity and consistent application of the approaches and drivers for APRA product group reporting over time. Insurers must to prepare a document outlining how they have applied the allocation principles to allocate AASB 17 items to APRA product groups for APRA reporting.
For clarity, life insurers must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure (for details, refer to the requirements outlined in LPS 340).
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Reporting Standard LRS 001 Reporting Standard LRS 001
Reporting Standard LRS 001
Reporting Requirements
Objective of this Reporting Standard
This Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.
Authority
This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.
Application and Commencement
This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.
General Instructions
Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.
Periods for Provision of Returns
A life company is to provide information required under reporting standards:
(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;
(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and
(c) in the case of annual information - three months after the end of the reporting period to which the information relates.
APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.
Transition
The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:
APRA’s stated rationale in the Standard is administrative: to provide consistent instructions for the collection of life insurance data and to set deadlines. The Standard implements that rationale through reporting levels, measurement bases, actuarial and audit requirements, product group taxonomies, and documented allocation principles. The Standard delegates significant technical choices to entities by requiring consistent application, documented allocation methods, and reliance on established prudential and accounting standards.
Main concepts
LRS 001 rests on a handful of organising concepts that determine how life companies must present and lodge data. These concepts appear both in the body of the Standard (s 1-9) and in Attachment A. The main concepts are scope and application, reporting level, basis of preparation and measurement, actuarial valuation, allocation of AASB 17 items to APRA product groups, audit and assurance, and units and rounding.
Scope and application: The Standard applies to “life companies”, defined as life insurance companies and friendly societies registered under the Life Act (s 3). It takes effect for reporting periods ending on or after 1 July 2023 (s 3). A transitional rule preserves the old LRS 001 for reporting obligations that relate to periods ending before 1 July 2023 but with reporting deadlines after revocation (s 7).
Reporting level: Attachment A explains that each reporting standard will specify whether reporting should be completed at the level of each statutory fund/approved benefit fund, the shareholder/management fund, or the life company as a whole (Attachment A, Pt 2). This determines the granularity of reported numbers and whether statutory fund segmentation is required.
Basis of preparation and measurement: The General Instruction Guide requires consistency with relevant Australian Accounting Standards except where a specific reporting instruction states otherwise (Attachment A, Pt 3.2). For capital reporting, fair values must follow Prudential Standard LPS 112; for accounting reporting, AASB 13 definitions apply (Attachment A, Pt 3.4). Foreign currency conversion is required in accordance with AASB 121 and all amounts are to be in whole Australian dollars with no decimal place; ratios to two decimal places (Attachment A, Pt 3.5).
Actuarial valuation basis: Policy liabilities and actuarial valuations must follow Prudential Standard LPS 340 (Attachment A, Pt 3.3). APRA accepts that full detailed valuations may not be performed every period and permits reasonable estimation where necessary, provided the approximating methodology is subject to advice from the Appointed Actuary consistent with CPS 320 (Attachment A, Pt 3.3).
Allocation of AASB 17 items to APRA product groups: Attachment A, Pt 6 sets out five allocation principles and requires documented allocation approaches and drivers. The principles prioritise direct allocation where practicable, require systematic and consistent approaches over time, and insist that aggregates reconcile to statutory AASB 17 amounts. Importantly, life insurers must not use these allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across components of the Life Act reporting structure; LPS 340 controls that allocation (Attachment A, Pt 6).
Product group taxonomies: The Guide prescribes APRA product groups for life insurers (L1-L19) and friendly societies (F1-F8), with notes on definitions and use limitations (Attachment A, Pt 5.1-5.2). Specific items such as definitions of Death, TPD, Trauma and DII are delegated to Reporting Standard LRS 750.0.
Audit and assurance: The reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 (Attachment A, Pt 4). This ties data reporting to external assurance and audit processes.
Interpretation and legal references: The Standard treats references to Acts, Prudential Standards and Australian Accounting or Auditing Standards as references to those instruments as in force from time to time (s 9). AASB references in the Standard refer to the Australian Accounting Standards (s 8).
Taken together, these concepts define a framework that leans on existing prudential and accounting standards for technical detail, prescribes categorical reporting levels and timetables, and requires internal documentation and audit evidence to support allocation choices and estimations.
Who it affects
The Standard names the affected parties directly and identifies collateral actors who have operational roles. The named reporting entities are “life companies”, defined explicitly as all life insurance companies including friendly societies registered under the Life Insurance Act 1995 (s 3). That categorisation covers both shareholder-owned life insurers and mutuals/friendly societies.
Within those entities, the Standard imposes obligations on several internal roles and processes:
Financial reporting teams who must prepare balance sheet, income statement and AASB 17 related numbers on the bases described in Attachment A (Pt 3.2-3.5).
Appointed Actuaries who must advise on approximating valuation methodologies where full actuarial valuations are not performed (Attachment A, Pt 3.3; see CPS 320 citation).
Audit teams and external auditors, because the reporting standards must be subjected to audit review and testing as required by Prudential Standard LPS 310 (Attachment A, Pt 4).
Risk, actuarial and accounting governance functions responsible for designing, documenting and implementing allocation approaches under the allocation principles (Attachment A, Pt 6).
The Standard also affects external stakeholders indirectly:
APRA as the recipient and the body that can grant lodgement extensions in writing (s 6).
Reinsurers to the extent that product group classification requires treaty-level determination of stepped versus non-stepped premium treatment for reinsurance contracts (Attachment A, Pt 5.1 notes).
Practitioners who prepare statutory and regulatory returns, because the product group mapping, units of measurement and valuation bases dictate formats and reconciliations.
Who pays: The compliance costs fall on life companies and friendly societies required to prepare and lodge the required returns. Those costs manifest as staff time, system changes, actuarial work (including Appointed Actuary advice), audit fees to meet LPS 310 requirements, and potential consultancy expense to document allocation drivers and approaches.
Who decides: APRA sets the Standard and can vary deadlines by written extension (s 6). Life companies retain decision rights over allocation approaches where direct allocation is not possible, subject to the five principles and the documentation requirement (Attachment A, Pt 6). Appointed Actuaries and auditors make technical determinations and provide assurance within the prudential framework cited.
Practical effect on behaviour: Entities will need to map internal product and accounting systems to the APRA product group taxonomy, maintain documented allocation methodologies for AASB 17 items, ensure actuarial valuation methods comply with LPS 340 and are overseen by the Appointed Actuary when approximations are used, and ensure audit evidence aligns with LPS 310. Reinsurers must classify premium structures at the treaty level rather than by cedant underlying risk. Firms using L19 as a residual product group must consult APRA before classifying items there. These requirements will influence how entities structure internal data, fund segmentation, and reporting processes.
Key duties and rights
The Standard imposes specific duties and confirms certain rights. The duties are procedural and technical; the rights are limited and administrative.
Primary duties set out in the Standard and Attachment A:
Duty to provide information to APRA in accordance with reporting standards made under s 13 of the Financial Sector (Collection of Data) Act 2001 (s 2). The Standard specifies that detailed instructions for individual reporting items are in specific reporting standards and must be considered together with the General Instruction Guide and prudential standards (s 4).
Duty to lodge returns within fixed timeframes: quarterly and half-yearly returns within 20 business days of period end, annual returns within three months of period end (s 5). These timeframes are mandatory unless APRA grants a written extension (s 6).
Duty to prepare financial information at the appropriate reporting level (statutory funds, shareholder/management fund, company) as specified by each reporting standard (Attachment A, Pt 2).
Duty to base reporting on Australian Accounting Standards except where otherwise stated, and to consider interpretation, measurement bases, and netting conventions (Attachment A, Pt 3.2).
Duty to perform actuarial valuations and policy liability determination in accordance with Prudential Standard LPS 340 (Attachment A, Pt 3.3). Where full procedures are not used, the duty is to use reasonable estimation based on detailed valuation procedures and to have approximating valuation methodology subject to the Appointed Actuary’s advice in line with CPS 320 (Attachment A, Pt 3.3).
Duty to determine fair value for capital reporting according to LPS 112 and for accounting reporting according to AASB 13 (Attachment A, Pt 3.4).
Duty to apply the APRA product group taxonomy and, where allocation of AASB 17 items is required, to follow the five allocation principles and document allocation approaches and drivers (Attachment A, Pt 5-6).
Duty to subject reporting standards to audit review and testing as detailed in LPS 310 (Attachment A, Pt 4).
Duty to report numbers in whole Australian dollars with no decimal places, present ratios to two decimal places, and convert foreign currency amounts in accordance with AASB 121 (Attachment A, Pt 3.5).
Administrative rights and APRA discretion:
APRA’s right to grant written extensions to reporting due dates. The Standard anticipates APRA exercising discretion and requires written notice to set the new due date (s 6).
A life company’s right to change an allocation approach over time if, on accounting and actuarial grounds, it becomes inappropriate, subject to the requirement for systematic, rational, and documented approaches and to consistency where appropriate (Attachment A, Pt 6, Principles 2 and 3).
Constraints on discretion inside firms:
Although firms may choose allocation drivers and approaches where direct allocation is not possible, they must ensure the aggregate of allocated numbers reconciles to statutory AASB 17 numbers (Principle 4) and must not use allocation principles to allocate AASB 17 insurance and reinsurance assets and liabilities across Life Act reporting components (Attachment A, Pt 6).
Delegations and sign‑offs embedded in duties:
Approximating valuation methodologies must be subject to the Appointed Actuary’s advice (Attachment A, Pt 3.3).
Audit review and testing must follow LPS 310 (Attachment A, Pt 4), placing an obligation on reporting entities to secure audit processes that satisfy that prudential standard.
In short, the Standard imposes detailed preparatory and documentation duties with limited administrative rights (extensions from APRA and some internal flexibility on allocation methods) while anchoring technical standards to existing prudential and accounting instruments.
Penalties and enforcement
The text of LRS 001 provided does not itself set out sanctioning provisions, monetary penalties, or enforcement mechanisms in statutory language. The instrument repeatedly frames its role as prescribing reporting instructions and timeframes for submissions to APRA (s 2-5). The Standard records APRA’s administrative power to grant written extensions to due dates (s 6). It also requires that reporting be subjected to audit review and testing as detailed in Prudential Standard LPS 310 (Attachment A, Pt 4), which implies that the quality and assurance of reported data are subject to external verification.
Because LRS 001 is made under s 13 of the Financial Sector (Collection of Data) Act 2001 (s 1), enforcement and penalty mechanisms that attach to failure to comply with reporting requirements are likely governed by that Act and by APRA’s statutory powers under that regime. The Reporting Standard text, however, does not reproduce or restate those powers, and does not specify any penalties, civil sanctions, or criminal offences within its own language.
Operational enforcement levers apparent in the Standard and its attachments:
Administrative control through deadlines and APRA’s power to extend them in writing (s 5-6). APRA’s control over due dates is an operational enforcement lever, because timeliness is a mandated obligation.
Assurance and verification via audit requirements under LPS 310 (Attachment A, Pt 4). Those audit processes create a pathway for APRA to identify reporting deficiencies through auditor opinions and to require corrective action.
Monitoring through reconciliation and documentation requirements: the allocation principles require documented approaches and drivers, and aggregates must reconcile with statutory AASB 17 numbers (Attachment A, Pt 6, Principle 4). That documentation creates an audit trail for APRA to assess compliance.
What is not in the text and therefore should not be assumed:
The Standard does not specify fines, suspension, or other penalty mechanics. It also does not explicitly state the administrative or enforcement actions APRA will take for noncompliance, beyond the references to reporting obligations and audit requirements. Any statement about fines or enforcement procedures outside the Standard would require reference to the Financial Sector (Collection of Data) Act 2001 or other statutes.
Practical inference for readers: firms should assume that noncompliance will draw APRA’s scrutiny because reporting is mandatory under s 13 powers, that audit processes provide a mechanism for APRA to detect noncompliance, and that APRA controls timing via its extension power. For details on statutory penalties or formal enforcement powers, readers must consult the Financial Sector (Collection of Data) Act 2001 and APRA’s published regulatory enforcement policies, which are not reproduced in LRS 001.
How it interacts with other laws
LRS 001 explicitly cross‑references a set of external statutory and prudential instruments and instructs life companies to prepare information under those regimes. The Standard therefore operates as part of a networked compliance architecture.
Primary statutory and prudential cross‑references in the text:
Financial Sector (Collection of Data) Act 2001, section 13 is the enabling head of power for reporting standards (s 1-2).
Life Insurance Act 1995 defines the class of entities subject to the Standard; the Standard applies to companies registered under that Act (s 3).
Corporations Act 2001 is referenced for the meaning of “financial year” (s 8).
Prudential Standards invoked: LPS 340 (Valuation of Policy Liabilities) for determination of policy liabilities and valuation bases (Attachment A, Pt 3.3); LPS 112 (Capital Adequacy: Measurement of Capital) for fair value in capital reporting (Attachment A, Pt 3.4); LPS 310 (Audit and Related Matters) for audit review and testing (Attachment A, Pt 4); CPS 320 (Actuarial and Related Matters) for Appointed Actuary obligations when estimation is used (Attachment A, Pt 3.3). The Standard requires consistency with these prudential instruments.
Australian Accounting Standards and Auditing Standards are integrated by reference: AASB 13 for fair value measurement for accounting purposes, AASB 121 for foreign currency conversion, and AASB references generally in s 8.
Functional interaction mechanisms:
LRS 001 delegates technical valuation, measurement, and audit detail to prudential and accounting standards. For example, when assessing policy liabilities, reporters must follow LPS 340; when converting foreign currency, AASB 121 controls the mechanics (Attachment A, Pt 3.3 and Pt 3.5). This makes compliance with LRS 001 contingent upon concurrent compliance with those other instruments.
The Standard requires reconciliation and aggregation to AASB 17 statutory numbers when allocating items across APRA product groups (Attachment A, Pt 6, Principle 4). That creates an interface between AASB 17 statutory reporting and APRA product group reporting, with the requirement that allocation must not change the statutory AASB 17 total.
For reinsurance and premium classification, the Guide requires reinsurers to treat stepped premium determination at the treaty level rather than on the cedant’s underlying risk profile (Attachment A, Pt 5.1 notes). This affects how reinsurance treaties are mapped for APRA reporting versus cedant accounting.
Audit interactions: the requirement to subject reporting standards to audit review under LPS 310 links APRA reporting to statutory audit and prudential audit frameworks. External auditors and Appointed Actuaries are the technical interfaces between internal reporting and APRA’s expectations.
Limitations and prohibitions that shape interaction:
Life insurers must not use the allocation principles set out in the Guide to allocate AASB 17 insurance and reinsurance assets and liabilities across components of the Life Act reporting structure; those allocations are governed by LPS 340 (Attachment A, Pt 6). This creates a hard boundary between APRA product group allocation and Life Act reporting structure allocations.
The Standard leaves some definitions to other reporting standards (for example, LRS 750.0 provides definitions of Death, TPD, Trauma and DII). That makes LRS 001 dependent on the suite of reporting standards for complete definitional clarity.
Practical consequence for compliance: firms must maintain cross-references and reconciliation processes between statutory financial reporting under Australian Accounting Standards, prudential valuations under the cited LPS/CPS instruments, and the APRA product group and template reporting requirements. Compliance obligations are therefore multi-layered and interdependent; failing to align a statute-based accounting choice with prudential valuation assumptions will create reconciliation issues when preparing APRA returns.
Amendment history
The provided text records a discrete commencement and a transitional mechanism, but does not list a sequence of prior amendments or a legislative amendment log beyond those points.
Key amendment and commencement details in the text:
The Standard applies for reporting periods ending on or after 1 July 2023 (s 3). That date is the explicit commencement date for the current version.
Transition provisions preserve the old LRS 001 for transitional reporting periods as defined in s 7. Those rules identify three concepts: old LRS 001 (the revoked reporting standard), old reporting standard (a reporting standard which has been revoked), and transitional reporting period (a reporting period which ended before 1 July 2023 and for which reporting under the old standard was still required by a date on or after the date of revocation) (s 7). The transitional provision means that where a reporting obligation was triggered under the prior standard and its reporting date remains after revocation, the old standard continues to apply for that obligation.
What the text does not contain:
The document does not supply a history of prior amendments before revocation, no versions list, and no amending instrument identifiers or dates besides the single commencement date. There is no explicit record of earlier version numbers or the date the old LRS 001 was revoked in the extract provided.
The Standard contains internal cross-references to other instruments whose amendment histories it does not reproduce. It does, however, say that references to Acts, Prudential Standards, Reporting Standards and Australian Accounting or Auditing Standards are to be read as those instruments in force from time to time (s 9). That clause means that the Standard will operate in a dynamic regulatory environment: when referenced instruments are amended, their amended content will inform interpretation without necessitating immediate amendment to LRS 001.
Practical implications of the amendment mechanics:
Because the Standard imports other instruments by reference and states that references are to be read as in force from time to time (s 9), entities must maintain awareness of updates to LPS 340, LPS 112, LPS 310, CPS 320, and the relevant Australian Accounting Standards. Changes in those instruments can alter technical compliance requirements without changes to LRS 001 itself.
The transitional provision requires record-keeping and awareness of reporting obligations that straddle the revocation date. Entities must identify transitional reporting periods as defined and determine whether the old standard applies for those specific returns.
There is no schedule of future amendments in the text; compliance programmes should therefore include active monitoring for APRA determinations, prudential standard updates, and AASB changes.
In short, the amendment history material provided is limited to the commencement date of the current standard and a transitional preservation of the prior standard for certain lagging reporting obligations. The Standard relies on external instruments that may change and be applied as amended, and it does not itself catalogue past revisions.
Litigation history
The text of Reporting Standard LRS 001 as provided does not reference any litigation history, judicial decisions, or administrative appeals arising from the Standard. It is a prescriptive reporting instrument and contains no case law citations, no references to disputes, and no description of any legal challenges or determinations concerning the Standard or its predecessor within the provided extract.
What the absence of litigation references means in practice:
There is no information here that would allow a reader to identify prior court decisions or administrative rulings that construe the Standard, its validity, or its application. Any analysis of litigation risk or precedent must therefore be conducted from sources outside the Standard, such as case law databases, APRA enforcement action records, or tribunal reports, none of which are included in the text supplied.
Because the Standard relies on and cross‑references other statutory and prudential instruments, litigation that concerns interpretation of those instruments (for example, disputes about the meaning or application of LPS 340, LPS 112, or the Financial Sector (Collection of Data) Act 2001) could indirectly affect how LRS 001 is interpreted or applied. The Standard itself does not record such outcomes.
Practical advice based on the text:
Practitioners needing to advise on compliance risk or likely enforcement outcomes should check the Financial Sector (Collection of Data) Act 2001, any enforcement policies published by APRA, and decisions involving APRA reporting obligations or prudential standards. The Standard provides the reporting requirements; it does not provide dispute resolution or precedent material.
If a firm anticipates contentious reporting choices,such as allocation approaches that materially affect prudential metrics,consider documenting rationale comprehensively, obtain Appointed Actuary and auditor sign-offs in line with CPS 320 and LPS 310, and be prepared to engage APRA for clarificatory guidance in order to reduce litigation risk. The Standard itself emphasises documentation and audit trails as compliance tools (Attachment A, Pt 3.3-3.4, Pt 6).
Gotchas
This Standard contains several potential operational and interpretation pitfalls that can raise compliance risk or produce material reporting errors if not anticipated. The following list identifies specific "gotchas" grounded explicitly in the Standard and the General Instruction Guide.
Timetable confusion and business-day rule: Quarterly and half-yearly returns are due 20 business days after the period end, while annual returns are due three months after period end (s 5). Entities must distinguish calendar days from business days, and ensure internal workflows account for weekends and public holidays. APRA can grant a written extension (s 6), but relying on informal permission is not sufficient.
Transition traps: The old LRS 001 continues to apply for "transitional reporting periods" that ended before 1 July 2023 but which had reporting deadlines on or after the revocation date (s 7). Firms must identify whether any outstanding reporting obligations fall into that transitional definition to avoid applying the new Standard in error.
Units, rounding and foreign currency conversion: The Guide mandates whole Australian dollars with no decimal places and ratios to two decimal places (Attachment A, Pt 3.5). Foreign currency amounts must be converted under AASB 121. A failure to apply consistent rounding rules or incorrect FX conversion methodology will create reconciliation differences with statutory accounts and APRA returns.
Different fair value definitions depending on purpose: For capital reporting, fair value must follow Prudential Standard LPS 112, while accounting fair value follows AASB 13 (Attachment A, Pt 3.4). Applying the wrong fair value definition to a capital reporting template can produce materially different capital measures.
Actuarial estimation requires Appointed Actuary oversight: APRA allows reasonable estimation where full valuations are not feasible, but the approximating valuation methodology must be subject to the Appointed Actuary’s advice in line with CPS 320 (Attachment A, Pt 3.3). Doing approximations without Appointed Actuary sign-off is a compliance gap.
Allocation documentation is mandatory and aggregate consistency required: When allocating AASB 17 items to APRA product groups, direct allocation is required where feasible; otherwise, allocation approaches must use documented allocation drivers and be systematic and rational (Attachment A, Pt 6, Principles 1-3). The aggregate of allocated numbers must reconcile to statutory AASB 17 numbers (Principle 4). Failure to document allocation drivers or to reconcile aggregates to statutory numbers will leave reports non‑defensible under audit and APRA review.
Forbidden allocation across Life Act components: The allocation principles explicitly do not permit allocation of AASB 17 insurance and reinsurance assets and liabilities across the components of the Life Act reporting structure; LPS 340 governs those allocations (Attachment A, Pt 6). Attempting to use APRA product group allocation methods to reallocate Life Act components is contrary to the Standard.
Product group edge cases: The L19 product group is a residual category and must not be used without consultation with APRA (Attachment A, Pt 5.1 notes). Using L19 ad hoc may trigger queries and require restatement.
Reinsurance stepped‑premium rule: For reinsurers, determination of whether a reinsurance contract is stepped or non‑stepped is based on the premium structure of the treaty, not the premium structure of the underlying cedants’ risks (Attachment A, Pt 5.1 notes). Misclassification at the reinsurer level will produce mismatches between cedant and reinsurer reporting.
Audit and assurance misalignment: Reporting standards must be subjected to audit review and testing under LPS 310 (Attachment A, Pt 4). If reporting templates and audit schedules are not aligned with LPS 310 timing and scope, audit findings will delay lodgeability and may give rise to APRA questions.
Definition dependencies across reporting standards: The Guide defers certain definitions (for example Death, TPD, Trauma and DII) to Reporting Standard LRS 750.0. Failure to consult LRS 750.0 when preparing claims or product group mappings will lead to inconsistent classifications.
Practical consequence: Entities should map these specific items to internal policies and checklists. Key controls should include sign-offs from the Appointed Actuary for approximations, a documented allocation methodology reviewed by accounting and actuarial functions, reconciliation controls to statutory AASB 17 numbers, and pre-lodgement audit readiness checks that align with LPS 310.
How to comply
Compliance under LRS 001 requires coordinated actions across accounting, actuarial, audit and reporting teams. Below is a practical compliance checklist and recommended control environment, tied to specific provisions of the Standard and Attachment A.
Confirm applicability and reporting periods
Identify whether your entity is a "life company" under s 3. If yes, LRS 001 applies for reporting periods ending on or after 1 July 2023.
Identify any transitional reporting periods per s 7 and apply the old LRS 001 where the transitional definition fits.
Set up timetables and escalation for due dates
Implement a calendar with lodgement deadlines: quarterly and half‑yearly returns due 20 business days after period end; annual returns due three months after period end (s 5).
Establish an APRA extension protocol: if a deadline cannot be met, seek a written extension from APRA under s 6 and retain the extension notice.
Map reporting levels and product groups
Determine required reporting level(s) for each return: statutory funds, shareholder/management fund, or company (Attachment A, Pt 2).
Map internal product codes to APRA product groups L1-L19 or F1-F8 as applicable (Attachment A, Pt 5.1-5.2). Do not use L19 without consulting APRA.
For reinsurance treaties, classify stepped versus non-stepped on treaty terms, not cedant underlying risk (Attachment A, Pt 5.1 notes).
Implement valuation and accounting bases
For accounting numbers, follow Australian Accounting Standards (Attachment A, Pt 3.2).
For policy liabilities, follow Prudential Standard LPS 340 (Attachment A, Pt 3.3).
For capital fair value measures, follow LPS 112; for accounting fair value, apply AASB 13 (Attachment A, Pt 3.4).
Ensure foreign currency conversion follows AASB 121 and that amounts are reported in whole AUD with no decimals; ratios to two decimals (Attachment A, Pt 3.5).
Create and document allocation approaches
Where direct allocation of AASB 17 items to APRA product groups is not possible, design allocation drivers and methods consistent with the five principles in Attachment A, Pt 6.
Document allocation drivers, formulae and rationale. Maintain version control for any changes and evidence why approaches remain appropriate or why they were changed (Principles 2-3).
Do not use allocation principles to reallocate AASB 17 assets/liabilities across Life Act reporting components; LPS 340 controls those allocations.
Control actuarial approximations and Appointed Actuary sign-off
Where approximating valuations are used, ensure they are based on detailed valuation procedures and secure written advice from the Appointed Actuary consistent with CPS 320 (Attachment A, Pt 3.3).
Retain the Appointed Actuary’s documentation and sign-offs as audit evidence.
Audit readiness
Coordinate with external auditors to meet the audit review and testing expectations in LPS 310 for the reporting standards (Attachment A, Pt 4).
Ensure auditors receive the mapping documentation, allocation driver files, and Appointed Actuary advice in time to perform planned testing prior to lodgement.
Data, reconciliation and systems
Update or configure data systems to produce APRA templates, enforce units and rounding rules, and capture product group mappings.
Build automated reconciliation reports that reconcile APRA submissions to statutory financial statements and to the source ledgers used by actuaries.
Governance and sign-offs
Establish clear roles for finance, actuarial, risk and compliance to approve returns. Require documented sign-offs for allocation methodologies and for any use of approximations.
Maintain a compliance log for each return showing who prepared, reviewed and approved the submission and listing any APRA extensions if granted.
Engage with APRA where ambiguity exists
Consult APRA before using residual product groups such as L19 or in cases where classification is uncertain.
If a material change in allocation methodology is contemplated, document the rationale and consider pre-notifying APRA to avoid post-lodgement queries.
Maintain a change control and monitoring programme
Monitor updates to referenced prudential standards and Australian Accounting Standards, noting s 9 which imports instruments “as in force from time to time”.
Maintain a rolling programme to refresh allocation drivers, update modelling assumptions, and test reconciliations.
Archive and evidence retention
Keep records of all allocation documentation, Appointed Actuary advice, audit reports, and any APRA correspondence consistent with internal record-retention policies and audit needs.
By following the numbered steps above, a life company can align operational processes with the specific obligations in LRS 001 and Attachment A. The emphasis in the Standard on documentation, Appointed Actuary involvement where approximations are used, the reconciliation of allocated figures to AASB 17 statutory numbers, and audit review under LPS 310 should guide the prioritisation of compliance controls.
Subdivision General Instruction GuideGeneral Instruction Guide
old LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;
old reporting standard means a reporting standard which has been revoked; and
transitional reporting period means a reporting period:
(a) which ended before 1 July 2023; and
(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.
Interpretation
In this reporting standard:
AASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;
annual information means information required to be provided in respect of each financial year of a life company;
financial year has the meaning in the Corporations Act 2001;
half yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and
quarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.
Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
Reporting Requirements Reporting Requirements
Reporting Standard LRS 001
Reporting Requirements
Objective of this Reporting Standard
This Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.
Authority
This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.
Application and Commencement
This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.
General Instructions
Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.
Periods for Provision of Returns
A life company is to provide information required under reporting standards:
(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;
(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and
(c) in the case of annual information - three months after the end of the reporting period to which the information relates.
APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.
Transition
The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:
old LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;
old reporting standard means a reporting standard which has been revoked; and
transitional reporting period means a reporting period:
(a) which ended before 1 July 2023; and
(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.
Interpretation
In this reporting standard:
AASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;
annual information means information required to be provided in respect of each financial year of a life company;
financial year has the meaning in the Corporations Act 2001;
half yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and
quarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.
Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
Objective of this Reporting Standard Objective of this Reporting Standard
Objective of this Reporting Standard
This Reporting Standard sets out the general instruction guide for providing information under life insurance reporting standards.
Authority
This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
Reporting standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 require financial sector entities to provide information to APRA. This Reporting Standard provides instructions applicable to all reporting standards to be completed by certain entities and specifies the periods within which those entities are to comply with those requirements.
Application and Commencement
This Reporting Standard applies to all life insurance companies including friendly societies (together referred to as ‘life companies’) registered under the Life Insurance Act 1995 (Life Act). This Reporting Standard applies for reporting periods ending on or after 1 July 2023.
General Instructions
Detailed instructions for the individual reporting items are included in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with the General Instruction Guide (which are Attachment A to this Reporting Standard), the relevant reporting standards and the prudential standards.
Periods for Provision of Returns
A life company is to provide information required under reporting standards:
(a) in the case of quarterly information - 20 business days after the end of the reporting period to which the information relates;
(b) in the case of half yearly information - 20 business days after the end of the reporting period to which the information relates; and
(c) in the case of annual information - three months after the end of the reporting period to which the information relates.
APRA may, in writing, grant a life company an extension of a due date in paragraph 5, for all or specified reporting standards, in which case the new due date will be the date on the notice of extension.
Transition
The old LRS 001 continues to apply to any reporting obligations for transitional reporting periods. For these purposes:
old LRS 001 means the reporting standard revoked in the determination making this Reporting Standard;
old reporting standard means a reporting standard which has been revoked; and
transitional reporting period means a reporting period:
(a) which ended before 1 July 2023; and
(b) in relation to which an insurer was required, under an old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.
Interpretation
In this reporting standard:
AASB references relate to the Australian Accounting Standards made by the Australian Accounting Standards Board;
annual information means information required to be provided in respect of each financial year of a life company;
financial year has the meaning in the Corporations Act 2001;
half yearly information means information required to be provided in respect of each half yearly based on the financial year of a life company; and
quarterly information means information required to be provided in respect of each quarter based on the financial year of a life company.
Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
Life Insurance Reporting Requirements Life Insurance Reporting Requirements
ATTACHMENT A
Life Insurance Reporting Requirements
General Instruction Guide
1. Introduction
The General Instruction Guide is intended to assist in the completion and lodgement of the reporting standards required to be lodged with APRA under the Reporting Standards made under section 13 of the Financial Sector (Collection of Data) Act 2001 by companies registered under the Life Act. In this document 'life company' means any company registered under the Life Act, including a friendly society. References to 'life insurers' apply to life companies other than friendly societies.
Detailed instructions for the individual reporting items are provided in the specific instructions for each reporting standard. These specific instructions need to be considered in conjunction with this document, the relevant reporting standards and prudential standards[1].
This General Instruction Guide covers all the reporting standards for life companies.
2. Reporting level
This section details the reporting levels for completion of each reporting standard. Each reporting standard outlines whether reporting is required in respect of:
Each statutory fund for a life insurer and each approved benefit fund for a friendly society;
The shareholder fund for a life insurer and the management fund for a friendly society; and
The life company (i.e. company as whole for both life insurers & friendly societies).
3. Basis of preparation
3.1. Year to date
The financial information required to be reported must be reported as at the close of business for the last day of the reporting period, or for the year-to-date period ending at the close of business on the last day of the reporting period, as relevant.
3.2. General accounting basis
In completing the reporting standards, unless otherwise stated specifically, reporting life companies are to follow the basis consistent with the relevant Australian Accounting Standards. In particular, appropriate consideration must be given to the interpretation, the basis for measurement, and the netting between revenues/expenses items and financial assets/liabilities.
3.3. Actuarial valuation basis
All actuarial valuations and calculations included in, or used in the preparation of the reporting standards must be performed in accordance with the relevant prudential standards. The determination of policy liabilities must be in accordance with Prudential Standard LPS 340 Valuation of Policy Liabilities (LPS 340).
APRA recognises that full actuarial and other valuation procedures may not be used for valuing policy liabilities in all reporting periods. In such cases, reasonable estimation may be applied for valuing policy liabilities and such estimation needs to be based on the detailed valuation procedures. It must be noted that where such estimation processes have taken place, the approximating valuation methodology used by the life company must be subject to the advice of the Appointed Actuary, in line with the requirements of Prudential Standard CPS 320 Actuarial and Related Matters.
3.4. Fair value approach
For capital reporting purposes, fair values must be determined in accordance with Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital.
For accounting reporting purposes, fair value has the same meaning as defined in AASB 13 Fair Value Measurement.
3.5. Units of measurement
Unless otherwise indicated by the specific item instructions, all reporting standards are to be prepared in whole Australian dollars (AUD) with no decimal place. Ratios are to be expressed to 2 decimal places. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.
3.6. Definitions
Definitions for the individual data items are included in the specific reporting instructions for each of the reporting standards.
Definitions, unless specified otherwise, apply to all life insurers and friendly societies. In a number of reporting standards, the term ‘statutory fund’ has been used to refer to a statutory fund of a life insurer or a benefit fund of a friendly society in the specific instructions. The term, ‘general fund’ has been used to refer to the shareholders’ fund of a life insurer or the management fund of a friendly society in the specific instructions.
Additionally, reference to shareholders has been used to refer to ‘members’ of a mutual association or society.
3.7. Related parties
Where this term is used or referred to in the reporting standards, it has the same meaning as it does in AASB 124 Related Party Disclosures.
4. Audit requirements
The reporting standards must be subjected to audit review and testing as detailed in Prudential Standard LPS 310 Audit and Related Matters.
5. APRA Product Group classification
For consistency of reporting across the range of reporting standards applicable to life companies,
This is an opening excerpt, not the complete document.