Part General instructions - Financial Sector (Collection of Data) (reporting standard) determination No. 59 of 2023 - General instructions

General instructionsGeneral instructions

Start here

Get a plain-English read of General instructions

Turn the raw legal text into a practical explanation grounded in Financial Sector (Collection of Data) (reporting standard) determination No. 59 of 2023.

Reporting Standard GRS 110.0

Prescribed Capital Amount

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.

Category of insurer

The different categories of insurer are defined in GPS 001.

Definitions

Terms in bold italics are defined in this Definitions section of these instructions.

A

Adjustments to prescribed capital amount as approved by APRA	These are adjustments made to an insurer’s prescribed capital amount if APRA is of the view that the Standard Method for calculating the prescribed capital amount does not produce an appropriate outcome in respect of a reporting insurer, or a reporting insurer has used inappropriate judgement or estimation in calculating the prescribed capital amount.Approved adjustments are to be reported separately in the Reporting Standard GRS 111.0 Adjustments and Exclusions highlighting the description of the adjustment given, transitional status and amount of adjustment applied. An increase in the risk charge is to be reported as a positive amount.
Aggregation benefit	The aggregation benefit makes an explicit allowance for diversification between asset risk and the sum of insurance risk and insurance concentration risk in the calculation of the prescribed capital amount.This must be determined in accordance with GPS 110.
Asset Concentration Risk Charge	The Asset Concentration Risk Charge is the minimum amount of capital required to be held against asset concentration risks. The Asset Concentration Risk Charge relates to the risk resulting from investment concentrations in individual assets or large exposures to individual counterparties or groups of related counterparties resulting in adverse movements in the reporting insurer’s capital base.This must be determined in accordance with Prudential Standard GPS 117 Capital Adequacy: Asset Concentration Risk Charge.
Asset Risk Charge	The Asset Risk Charge is the minimum amount of capital required to be held against asset risks. The Asset Risk Charge relates to the risk of adverse movements in the value of a reporting insurer’s capital base due to credit or market risks.This must be determined in accordance with Prudential Standard GPS 114 Capital Adequacy: Asset Risk Charge (GPS 114).

Operational Risk Charge	The Operational Risk Charge is the minimum amount of capital required to be held against operational risks. The Operational Risk Charge relates to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.This must be determined in accordance with Prudential Standard GPS 118 Capital Adequacy: Operational Risk Charge (GPS 118).
Operational Risk Charge for inwards reinsurance business (ORCI)	This is the Operational Risk Charge relating to the reporting insurer's inwards reinsurance business. This must be calculated using the formula in accordance with GPS 118.
Operational Risk Charge for business that is not inwards reinsurance (ORCNI)	This is the Operational Risk Charge relating to business written directly by the reporting insurer. This must be calculated using the formula in accordance with GPS 118.