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 in accordance with GPS 110 Capital Adequacy.

The value of the outstanding claims provision and the reinsurance recoveries that are included in this form must be measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation.

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

1. Outstanding claims provision by class of business (direct business and reinsurance). Outstanding claims provision refers to outstanding claims liabilities measured in accordance with GPS 310 Audit and Actuarial Reporting and Valuation;
2. Total outstanding claims provision for insurance business written either directly by the insurer or by inward reinsurance;
3. Central estimate of outstanding claims provision both gross and net of reinsurance and non reinsurance recoveries;
4. Risk margin for outstanding claims provision (in accordance with GPS 310 Audit and Actuarial Reporting and Valuation) both gross and net of reinsurance and non reinsurance recoveries;
5. The component of the outstanding claims provision that is classified as current liabilities; and
6. The component of the outstanding claims provision classified as non-current liabilities.