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Financial Sector (Collection of Data) (reporting standard) determination No. 72 of 2023
PP
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P
| PL capital factor % | This is the premiums liability risk capital factor applicable to each class of business as per GPS 115.For international business, as part of the supplementary information provided to APRA, Level 2 insurance groups are required to have mapped their international business to the Australian classes of business as defined in GPS 001. For international business, Level 2 insurance groups to report a weighted average capital factor which applies to the total of all the classes for each region. |
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| PL Insurance Risk Charge | This is the component of the Insurance Risk Charge which relates to the risk that the value of the net PL is greater than the value determined in accordance with GPS 340.For a Level 2 insurance group, under the GPS 340 basis, it is calculated as:net PL – total;multiplied by:PL capital factor %.For a Level 2 insurance group, under the AASB basis, it is calculated as:adjusted net premiums liabilities;multiplied by:PL capital factor %.Apply a zero risk charge where net PL – total or adjusted net premiums liabilities are negative. |
| Policy administration expenses | This item is the present value of policy administration expense associated with the GPS 340 PL.Level 2 insurance groups may use approximate methods and may take into account materiality (i.e. whether it would result in a materially different outcome) to report this item if this item is not readily available. |