Specific instructionsSpecific instructions

Specific instructions

Actuarial services

If actuarial services were used to complete this form input ‘Yes’, otherwise input ‘No’.

Classes of insurance business

Level 2 insurance groups are required to report financial data on both Australian business[7] and international business[8].

Diversification will be the primary adjustment made on a group basis that affects the insurance risk capital charge and should be recognised in the risk margin for each class of business. The totals at the end of the form, i.e. table 5, may take into account other group adjustments.

Australian business

Australian business is to be reported by class in;

Table 1: Direct business; and

Table 3: Reinsurance business.

A Level 2 insurance group may apply to APRA for a determination to report Australian business as a single region.

A Level 2 insurance group must not report Australian business in table 2 or table 4 unless a determination has been made by APRA to report Australian business as a single region.

Where APRA has made a determination to report Australian business as a single region, a Level 2 insurance group must (for the business to which the determination relates):

report Australian direct business in table 2;

report Australian reinsurance business in table 4; and

not report Australian business in table 1 or table 3.

International business

For international regions, class of business data is not reported in this form. Level 2 insurance groups, however, will be required to map their international business to the Australian classes of business in order to assign an insurance risk capital charge. Unless otherwise instructed by APRA, Level 2 insurance groups are to supply details of this mapping and the calculation of the insurance risk charge for international business as supplementary information to this form. This information is to be supplied to the Level 2 insurance group’s APRA Responsible Supervisor. Unless instructed otherwise, the reporting supplement is to accompany the submission of this form.

International business[9] is to be reported according to the regions specified in this form. Level 2 insurance groups are required to report according to the regions which most appropriately reflects the business and/or operational segments of the group. International business should not be reported under the ‘Australia’ region.