IntroductionIntroduction

Introduction

This instruction guide is designed to assist in the completion of GRF 210.0 Outstanding Claims Provision – Insurance Risk Charge.

The form can be used to calculate the risk capital charge associated with the licensed insurer’s Outstanding Claims Provision (OCP) in accordance with Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Capital Charge (GPS 115).

The value of the OCP and the reinsurance recoveries that are included in this form must be measured in accordance with Prudential Standard GPS 310 Audit and Actuarial Reporting and Valuation (GPS 310).

The purpose of this form is to provide detailed information in relation to the following:

1. OCP by class of business (direct business and reinsurance). OCP refers to outstanding claims liabilities measured in accordance with GPS 310;
2. Total OCP for insurance business written either directly by the insurer or by inward reinsurance;
3. Central estimate of OCP both gross and net of reinsurance and non-reinsurance recoveries;
4. Risk margin for OCP (in accordance with GPS 310) both gross and net of reinsurance and non-reinsurance recoveries; and
5. The surplus or deficit between the outstanding claims liability (OCL) held under AASB 1023 ‘General Insurance Contracts’ (AASB 1023) and the OCP held under GPS 310. .