Part General instructions - Financial Sector (Collection of Data) (reporting standard) determination No. 120 of 2023 - General instructions

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General instructions

Reporting tables

Tables described in this Reporting Standard list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.

Any specific combination of values in the table must not appear on more than one row in that table when reported.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

Actual gross claims incurred	This is actual claims incurred over the reporting period, gross of reinsurance. The basis of this item must reflect the basis used for the RFBEL calculation.Claims incurred excludes any impact from strengthening / weakening of assumptions.
Actual gross initial commission paid	This is actual initial commissions paid over the reporting period, gross of reinsurance. Commissions include rebates.
Actual gross premium accrued	This is actual premiums accrued over the reporting period, gross of reinsurance. The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the following definition.Premium is defined as gross of commissions, before profit share rebates, and inclusive of stamp duty, policy fees, loadings and discounts. This definition is consistent with the definition of premium in Reporting Standard LRS 750.0 Claims and Disputes (LRS 750.0).Accrued premium is defined as:, where:andLife companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.
Actual gross renewal commission incurred	This is actual renewal commissions incurred over the reporting period, gross of reinsurance. Commissions include rebates. The basis of this item must reflect the basis used for the RFBEL calculation.
Actual maintenance and overhead costs incurred	This is actual maintenance and overhead costs incurred over the reporting period. The basis of this item must reflect the basis used for the RFBEL calculation.
Actual net claims incurred	This is actual claims incurred over the reporting period, net of reinsurance. The basis of this item must reflect the basis used for the RFBEL calculation.Claims incurred excludes any impact from strengthening / weakening of assumptions.

Capital requirement excluding hedging(Variable Annuity Capital Charge Calculation Item)	This is the estimate of capital requirement for variable annuities covering the associated insurance and asset risks under the combined scenario, in the absence of any hedging / risk mitigation arrangements as per Prudential Standard LPS 110 Capital Adequacy (LPS 110).
Capital requirement including hedging(Variable Annuity Capital Charge Calculation Item)	This is the estimate of capital requirement for variable annuities covering the associated insurance and asset risks under the combined scenario, allowing for the effect of any hedging / risk mitigation arrangements as per LPS 110.
Claims in Course of Payment (CICP) reserve	This is the total expected claim payments and expenses in respect of claims in course of payment, that are associated with past premiums received prior to the reporting date.This also includes other related liabilities such as reopened claims and closed but not reported liabilities.This is part of past premium liabilities of RFBEL.

Effectiveness factor	This is the effectiveness factor E used to reflect the level of sophistication of the assumed model of dynamic hedging for the variable annuity capital calculation.
Event pre-diversified	This is the change in risk-free best estimate liabilities (RFBEL) (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable, as a result of applying the event stress prior to any allowance for diversification benefits between the insurance stresses.
Expected gross claims incurred	This is expected claims incurred over the reporting period, gross of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.Claims incurred excludes any impact from strengthening / weakening of assumptions.
Expected gross premiums accrued	This is expected premiums accrued over the reporting period, gross of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the definitions of premium and accrued premium outlined in actual gross premiums accrued.Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.
Expected gross renewal commissions incurred	This is expected renewal commissions incurred over the reporting period, gross of reinsurance. Commissions include rebates.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.
Expected maintenance and overhead costs incurred	This is expected maintenance and overhead cost incurred over the reporting period.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.
Expected net claims incurred	This is expected claims incurred over the reporting period, net of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.Claims incurred excludes any impact from strengthening / weakening of assumptions.
Expected net premiums accrued	This is expected premiums accrued over the reporting period, net of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the definitions of premium and accrued premium outlined in actual gross premiums accrued.Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.
Expected net renewal commissions incurred	This is expected renewal commissions incurred over the reporting period, net of reinsurance. Commissions include rebates.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

Effectiveness factor

This is the effectiveness factor E used to reflect the level of sophistication of the assumed model of dynamic hedging for the variable annuity capital calculation.

Event pre-diversified

This is the change in risk-free best estimate liabilities (RFBEL) (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable, as a result of applying the event stress prior to any allowance for diversification benefits between the insurance stresses.

Expected gross claims incurred

This is expected claims incurred over the reporting period, gross of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.Claims incurred excludes any impact from strengthening / weakening of assumptions.

Expected gross premiums accrued

This is expected premiums accrued over the reporting period, gross of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the definitions of premium and accrued premium outlined in actual gross premiums accrued.Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.

Expected gross renewal commissions incurred

This is expected renewal commissions incurred over the reporting period, gross of reinsurance. Commissions include rebates.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

Expected maintenance and overhead costs incurred

This is expected maintenance and overhead cost incurred over the reporting period.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

Expected net claims incurred

This is expected claims incurred over the reporting period, net of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.Claims incurred excludes any impact from strengthening / weakening of assumptions.

Expected net premiums accrued

This is expected premiums accrued over the reporting period, net of reinsurance.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.The starting basis of this item must reflect the basis used for the RFBEL calculation, and apply adjustments to this item (and other related items) to meet the definitions of premium and accrued premium outlined in actual gross premiums accrued.Life companies may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome from applying the outlined definition) to report this item if accrued premium which meets the outlined definition is not readily available.

Expected net renewal commissions incurred

This is expected renewal commissions incurred over the reporting period, net of reinsurance. Commissions include rebates.This is estimated at the end of the previous reporting period for the purposes of projecting RFBEL at that date.

Future premium liabilities (gross of reinsurance)	This is unstressed RFBEL arising from premiums expected to be received after the reporting date, gross of reinsurance.Future premium liabilities (gross of reinsurance) is calculated as the sum of (all gross of reinsurance):present value of expected incurred claims;present value of expected commissions;present value of expected maintenance and overhead costs; andpresent value of expected other future premium liability componentLess:present value of expected premiums.This is part of RFBEL (gross of reinsurance).
Future premium liabilities (net of reinsurance)	This is unstressed RFBEL arising from premiums expected to be received after the reporting date, net of reinsurance.Future premium liabilities (net of reinsurance) is calculated as the sum of (all net of reinsurance):present value of expected incurred claims;present value of expected commissions;present value of expected other future premium liability component; andpresent value of expected maintenance and overhead costsLess:present value of expected premiums.This is part of RFBEL (net of reinsurance).

Investment Fluctuation Reserve (IFR)	This is a reserve used for smoothing discretionary additions for non-participating benefits. For the purpose of the capital adequacy standards the investment fluctuation reserve is defined to be the difference between the value of the assets administered for the purpose of a subcategory and the aggregate value of the accounts under the policies belonging to that subcategory.
Incurred But Not Reported (IBNR) reserve	This is the total expected claim payments and expenses in respect of claims incurred but not reported, that are associated with past premiums received prior to the reporting date.This is part of past premium liabilities of RFBEL.
In-force business(Insurance business)	This is business which was in-force as at the end of the previous reporting period which is still in-force as at the reporting date.
Insurance business	This is the type of insurance business that a life company can have. Life companies must report data items by insurance business where required. Insurance business can either be:in-force business;new business; andall business consisting of in-force business and new business.They can further be broken down into the following:in-force business – Unstressed RFBEL (gross of reinsurance);in-force business – Unstressed RFBEL (net of reinsurance);new business – Unstressed RFBEL (gross of reinsurance);new business – Unstressed RFBEL (net of reinsurance);all business – Unstressed RFBEL (gross of reinsurance);all business – Unstressed RFBEL (net of reinsurance);all business – Stressed RFBEL (gross of reinsurance); andall business – Stressed RFBEL (net of reinsurance).
Insurance benefit	This is the type of insurance benefit that a life policy can include. Life companies must report data items by insurance benefit where required. Insurance benefits can be:non-participating benefits;participating benefits;friendly society benefits; orall benefits consisting of non-participating benefits, participating benefits and friendly society benefits.Non-participating benefits can either be:non-participating benefits without entitlement to discretionary additions; ornon-participating benefits with entitlement to discretionary addition.

Investment Fluctuation Reserve (IFR)

This is a reserve used for smoothing discretionary additions for non-participating benefits. For the purpose of the capital adequacy standards the investment fluctuation reserve is defined to be the difference between the value of the assets administered for the purpose of a subcategory and the aggregate value of the accounts under the policies belonging to that subcategory.

Incurred But Not Reported (IBNR) reserve

This is the total expected claim payments and expenses in respect of claims incurred but not reported, that are associated with past premiums received prior to the reporting date.This is part of past premium liabilities of RFBEL.

In-force business(Insurance business)

This is business which was in-force as at the end of the previous reporting period which is still in-force as at the reporting date.

Insurance business

This is the type of insurance business that a life company can have. Life companies must report data items by insurance business where required. Insurance business can either be:in-force business;new business; andall business consisting of in-force business and new business.They can further be broken down into the following:in-force business – Unstressed RFBEL (gross of reinsurance);in-force business – Unstressed RFBEL (net of reinsurance);new business – Unstressed RFBEL (gross of reinsurance);new business – Unstressed RFBEL (net of reinsurance);all business – Unstressed RFBEL (gross of reinsurance);all business – Unstressed RFBEL (net of reinsurance);all business – Stressed RFBEL (gross of reinsurance); andall business – Stressed RFBEL (net of reinsurance).

Insurance benefit

This is the type of insurance benefit that a life policy can include. Life companies must report data items by insurance benefit where required. Insurance benefits can be:non-participating benefits;participating benefits;friendly society benefits; orall benefits consisting of non-participating benefits, participating benefits and friendly society benefits.Non-participating benefits can either be:non-participating benefits without entitlement to discretionary additions; ornon-participating benefits with entitlement to discretionary addition.

Life company fund	This means the type of life company fund. Possible types are:statutory fund; andbenefit fund.
Longevity pre-diversified	This is the change in RFBEL (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable as a result of applying the longevity stress prior to any allowance for diversification benefits between the insurance stresses.

Morbidity future pre-diversified	This is the change in RFBEL (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable as a result of applying the morbidity future stress prior to any allowance for diversification benefits between the insurance stresses.
Morbidity random pre-diversified	This is the change in RFBEL (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable as a result of applying the morbidity random stress prior to any allowance for diversification benefits between the insurance stresses.
Mortality future pre-diversified	This is the change in RFBEL (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable as a result of applying the mortality future stress prior to any allowance for diversification benefits between the insurance stresses.
Mortality random pre-diversified	This is the change in RFBEL (net of reinsurance) or participating policy liability (net of reinsurance), whichever that is applicable as a result of applying the mortality random stress prior to any allowance for diversification benefits between the insurance stresses.

Other components of termination value	This is the value of any other components that must be included in the termination value, as defined in Prudential Standard LPS 112 Capital Adequacy: Measurement of Capital (LPS 112), of the respective APRA product group, on top of the past premium liabilities and the excess premium refunds.Other components reported should have allowance for surrender values paid in the event of voluntary termination, consistent with the requirement of Prudential Standard LPS 360 Termination Values, Minimum Surrender Values and Paid-up Values.
Other past premium liability component	This is the present value of other past premium liability components of RFBEL that do not fall under the categories of CICP reserve, IBNR reserve, RBNA reserve and URR.

Past premium liabilities (gross of reinsurance)	This is the value of unstressed RFBEL arising from premiums expected to be received after the reporting date, gross of reinsurance.Past premium liabilities (gross of reinsurance) is calculated as the sum of (all gross of reinsurance):Claims in Course of Payment (CICP) reserve;Incurred But Not Reported (IBNR) reserve;Reported But Not Assessed (RBNA) reserve;Unexpired Risk Reserve (URR); andother past premium liability component.This is part of RFBEL (gross of reinsurance).
Past premium liabilities net of reinsurance	This is the value of unstressed RFBEL arising from premiums expected to be received after the reporting date, net of reinsurance.Past premium liabilities (net of reinsurance) is calculated as the sum of (all net of reinsurance):Claims in Course of Payment (CICP) reserve;Incurred But Not Reported (IBNR) reserve;Reported But Not Assessed (RBNA) reserve;Unexpired Risk Reserve (URR); andother past premium liability component.This is part of RFBEL (net of reinsurance).
Policy owners’ retained profits (PRP)	This is policy owner’s retained profits (PRP) as defined in the Life Act.
Premium refund in excess of unexpired risk reserve	This is the value of any premium refund payable (in excess of the unexpired risk reserve held) at policy's termination based on the policy document's contractual agreement. The premium refund must be present-valued to the reporting date.
Present value of expected benefit payments	This is the present value of all expected future benefit payments after the reporting date.This is part of future and past premium liabilities of RFBEL.
Present value of expected commissions	This is the present value of all future expected commissions that are associated with premiums expected to be received after the reporting date. Commissions include rebates.This is part of future premium liabilities of RFBEL.
Present value of expected expenses	This is the present value of all future expected expenses after the reporting date.This is part of future and past premium liabilities of RFBEL.
Present value of expected incurred claims	This is the present value of all future expected claim payments that are associated with premiums expected to be received after the reporting date.This is part of future premium liabilities of RFBEL.
Present value of expected other RFBEL components	This is the present value of all other specific components of the future and past premium liabilities that do not fall under the categories of benefit payments, expenses and receipts.This is part of future and past premium liabilities of RFBEL.
Present value of expected other future premium liability component	This is the present value of all other specific components of the future premium liability that do not fall under the categories of claims, commission, expenses and premiums.This is part of future premium liabilities of RFBEL.
Present value of expected maintenance and overhead costs	This is the present value of all future expected maintenance and overheads costs that are associated with premiums expected to be received after the reporting date.This is part of future premium liabilities of RFBEL.
Present value of expected premiums	This is the present value of all future premiums expected to be received after the reporting date.This is part of future premium liabilities of RFBEL.
Present value of expected receipts	This is the present value of all expected future receipts after the reporting date.This is part of future and past premium liabilities of RFBEL.
Present value of risk-free value of future bonuses	This is the present value of all future bonuses after the reporting date.This is part of participating policy liabilities.

Past premium liabilities (gross of reinsurance)

This is the value of unstressed RFBEL arising from premiums expected to be received after the reporting date, gross of reinsurance.Past premium liabilities (gross of reinsurance) is calculated as the sum of (all gross of reinsurance):Claims in Course of Payment (CICP) reserve;Incurred But Not Reported (IBNR) reserve;Reported But Not Assessed (RBNA) reserve;Unexpired Risk Reserve (URR); andother past premium liability component.This is part of RFBEL (gross of reinsurance).

Past premium liabilities net of reinsurance

This is the value of unstressed RFBEL arising from premiums expected to be received after the reporting date, net of reinsurance.Past premium liabilities (net of reinsurance) is calculated as the sum of (all net of reinsurance):Claims in Course of Payment (CICP) reserve;Incurred But Not Reported (IBNR) reserve;Reported But Not Assessed (RBNA) reserve;Unexpired Risk Reserve (URR); andother past premium liability component.This is part of RFBEL (net of reinsurance).

Policy owners’ retained profits (PRP)

This is policy owner’s retained profits (PRP) as defined in the Life Act.

Premium refund in excess of unexpired risk reserve

This is the value of any premium refund payable (in excess of the unexpired risk reserve held) at policy's termination based on the policy document's contractual agreement. The premium refund must be present-valued to the reporting date.

Present value of expected benefit payments

This is the present value of all expected future benefit payments after the reporting date.This is part of future and past premium liabilities of RFBEL.

Present value of expected commissions

This is the present value of all future expected commissions that are associated with premiums expected to be received after the reporting date. Commissions include rebates.This is part of future premium liabilities of RFBEL.

Present value of expected expenses

This is the present value of all future expected expenses after the reporting date.This is part of future and past premium liabilities of RFBEL.

Present value of expected incurred claims

This is the present value of all future expected claim payments that are associated with premiums expected to be received after the reporting date.This is part of future premium liabilities of RFBEL.

Present value of expected other RFBEL components

This is the present value of all other specific components of the future and past premium liabilities that do not fall under the categories of benefit payments, expenses and receipts.This is part of future and past premium liabilities of RFBEL.

Present value of expected other future premium liability component

This is the present value of all other specific components of the future premium liability that do not fall under the categories of claims, commission, expenses and premiums.This is part of future premium liabilities of RFBEL.

Present value of expected maintenance and overhead costs

This is the present value of all future expected maintenance and overheads costs that are associated with premiums expected to be received after the reporting date.This is part of future premium liabilities of RFBEL.

Present value of expected premiums

This is the present value of all future premiums expected to be received after the reporting date.This is part of future premium liabilities of RFBEL.

Present value of expected receipts

This is the present value of all expected future receipts after the reporting date.This is part of future and past premium liabilities of RFBEL.

Present value of risk-free value of future bonuses

This is the present value of all future bonuses after the reporting date.This is part of participating policy liabilities.