Financial Sector (Collection of Data) (reporting standard) determination No. 83 of 2006 - Reporting Standard GRS 310.2 (2007) Claims Expense and Reinsurance Recoveries
Claims expenseClaims expense
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Claims expense
Claims expense for the purpose of this form is reported in relation to the following:
- claim payments made in the current year,
- movements in Outstanding Claims Provision, and
- movements in Premium Liabilities.
The column “Total gross claims expense” is calculated automatically and is derived from the above components in the following way:
- claim payments made in the current year
Plus:
- OCP at the end of the reporting period
Less:
- OCP at beginning of financial year
Plus:
- PL at the end of the reporting period
Less:
- PL at beginning of financial year
Note: All components required for the calculation of “Total gross claims expense” are to be reported gross of reinsurance recoveries and non-reinsurance recoveries.
Claims expense that relate to movements in the OCP and PL are to be based on the OCP and PL that are reported in GRF 300.0 Statement of Financial Position. The OCP and PL reported in the Statement of Financial Position does not have to be equal to, but must not be less than, the respective amounts required by GPS 310 Audit and Actuarial Reporting and Valuation and hence the amounts reported in the forms GRF 210.0 Outstanding Claims Provision - Insurance Risk Charge and GRF 210.1 Premium Liabilities - Insurance Risk Charge.
The total amount of claims expense reported in this form must match the total claims expense reported in line item called “Gross Claims Expense” in GRF 310.0 Statement of Financial Performance.
The claims expense is to be disclosed by type of business (i.e. direct business and inwards reinsurance business).
Reinsurance recoveries
Report the amount of reinsurance recoveries in relation to claims recognised in the calculation of the gross claims expense broken down into the following components:
- reinsurance recoveries revenue relating to current and prior years; and
- reinsurance recoveries revenue relating to future years.
The total amount reported in this form for each of these components must match the corresponding item reported in GRF 310.0 Statement of Financial Performance.
Each component of reinsurance recoveries is to be disclosed by type of business (i.e. direct business and inwards reinsurance business).
Recoveries other than reinsurance
Report the amount of recoveries other than reinsurance in relation to claims recognised in the calculation of the gross claims expense broken down into the following components: