Financial Sector (Collection of Data) (reporting standard) determination No. 85 of 2023
AASB 17 liability for incurred claims AASB 17 liability for incurred claims as defined in AASB 17 Appendix A
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Statement of Profit or Loss and Other Comprehensive Income by Product Group and by Region
General instructions
These instructions assist completion of Reporting Standard GRS 311.0.G Statement of Profit or Loss and Other Comprehensive Income by Product Group and by Region. This Reporting Standard collects income statement data by APRA product groups (classes of business) and regions.
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.
General accounting basis
Unless otherwise specifically stated, reporting insurers are to report in accordance with the relevant Australian Accounting Standards.
References to Australian Accounting Standards
Each item reported under this Reporting Standard aligns with the Accounting Standards made by the Australian Accounting Standards Board (AASB). The applicable AASB references are specified with each item. AASB reference provides a written description of the accounting meaning of an International Financial Reporting Standards (IFRS) Taxonomy element.
IFRS taxonomy element reference
Each IFRS taxonomy element contains at least one cross-reference to an AASB Standard (that incorporates IFRS 17 Standards as issued and amended by the International Accounting Standards Board (IASB)) and has a reference type that can be used to identify the source of that element. The IFRS Taxonomy uses the following element reference types:
(a) disclosure—an element of this type depicts a presentation or disclosure requirement of an IFRS/AASB Standard;
(b) example—an element of this type represents an example provided in an IFRS/AASB Standard or its accompanying materials; and
(c) common practice—an element of this type reflects common reporting practice within IFRS/AASB financial statements they not specifically mentioned in IFRS/AASB Standards or their accompanying materials, but are consistent with IFRS/AASB Standards. They have been found to be frequently disclosed across a range of companies and accounting jurisdictions.
Definitions
Terms that are highlighted in bold italics are defined in these instructions.
Specific instructions
Reporting basis
Information in this form is to be completed by general insurers for each reporting period on a Level 2 insurance group basis.
APRA product groups
The APRA product groups (classes of business) that apply for the reporting purpose are defined in GPS 001:
Section AASB 17 liability for incurred claims - Financial Sector (Collection of Data) (reporting standard) determination No. 85 of 2023 - AASB 17 liability for incurred claims as defined in AASB 17 Appendix A | Zoe
Insurance business
C1: Householders
C2: Commercial Motor
C3: Domestic Motor
C4: Travel
C5: Fire and ISR
C6: Marine
C7: Aviation
C8: Consumer Credit
C9: Other Accident
C10: Mortgage
C11: CTP
C12: Public and Product Liability
C13: Professional Indemnity
C14: Employers Liability
C15: Cyber
C16: Directors and Officers
C17: Other Direct – Category A
C18: Other Direct – Category B
C19: Other Direct – Category C
Reinsurance business
RB1: Proportional – Category A
RB2: Proportional – Category B
RB3: Proportional – Category C
RB4: Non-proportional – Category A
RB5: Non-proportional – Category B
RB6: Non-proportional – Category C
Direct business is any insurance business written / insurance contracts issued by the reporting insurer.
Inwards reinsurance is any reinsurance business written / reinsurance contracts issued by the reporting insurer.
Category A consists of householders, commercial motor, and domestic motor. Category B consists of travel, fire and ISR, marine and aviation, consumer credit, and other accident. Category C consists of mortgage, CTP, public and product liability, professional indemnity, employers liability, cyber, and directors & officers liability.
Allocation principles
General insurers are to apply the allocation principles defined in GRS 001 to allocate AASB 17 numbers to APRA classes of business where it is not possible to clearly identify AASB 17 numbers and assign it to specific APRA classes of business.
Units of measurement
Report values in this form in whole Australian dollars (AUD) with no decimal place.
Convert amounts denominated in foreign currency to AUD in accordance with AASB 121 The Effects of Changes in Foreign Exchange Rates.
Report losses and expenses as negative values.
Region reporting
Inter-region elimination is the value of inter-region transactions, which are eliminated on consolidation, and need to be reported as negative values under Inter-region elimination.
Australian and international business
Australian business is as defined in Prudential Standard GPS 001 Definitions (GPS 001).
International business is as defined in GPS 001.
For entities that are not insurers within the Level 2 insurance group, items should be reported as:
Australian business where they relate to an entity incorporated in Australia; and
International business where they relate to an entity incorporated outside of Australia. The entity should be included in the international region that most appropriately reflects the incorporation of the entity. The region can be selected to align to the region(s) chosen by the Level 2 insurance group for reporting insurance business carried on by an entity within the group that is not authorised under the Insurance Act 1973.
Columns for Level 2 insurance group
Columns 1 to 25
Report the amount for Australian business by APRA product group.
Column 26
Report the amount for International business - New Zealand.
Column 27
Report the amount for International business - South East Asia
Column 28
Report the amount for International business - Asia Pacific
Column 29
Report the amount for International business - USA
Column 30
Report the amount for International business - Americas
Column 31
Report the amount for International business - UK/Europe
Column 32
Report the amount for International business - Other
Column 33
Report the amount for Inter-region elimination.
Column 34 (Total business)
Report the total amount of columns 1-33.
Insurance revenue
Item 1
Item 1 insurance revenue is a derived item and is calculated as the sum of item 1.1 and item 1.2.Report this item in accordance with AASB 101.82 (a) (ii) Disclosure, AASB 17.80 (a) and AASB 17.83.
Item 1.1
Report insurance revenue from direct business.
Item 1.2
Report insurance revenue from inwards reinsurance.
Insurance service expense
Item 2
Item 2 insurance service expense, is a derived item calculated as the sum of item 2.1 and item 2.2.Report this item in accordance with AASB 101.82 (ab) Disclosure, AASB 17.80 (a) and AASB 17.84
Item 2.1
Item 2.1 insurance service expense from direct business is a derived item and is calculated as the sum of items 2.1.1 to 2.1.6 inclusive.
Item 2.1.1
Report incurred claims from direct business.
Item 2.1.2
Report other insurance service expenses from direct business.Report insurance acquisition cash flows that have been recognised as expenses when incurred under AASB 17.59(a) at this item.
Item 2.1.3
Report amortisation of insurance acquisition cash flows from direct business.
Item 2.1.4
Report losses and reversal of losses on onerous contracts from direct business Report this item in accordance with AASB 17.47-52.
Item 2.1.5
Report changes that relate to past service: changes to liabilities for incurred claims from direct business.Report this item in accordance with AASB 17.103 (b) (iii) Disclosure.
Item 2.1.6
Report impairment losses/reversals on assets for insurance acquisition cash flows from direct business.Report this item in accordance with AASB 17 Appendix A, AASB 17.28B, AASB 17.28E and AASB 17.28F. APRA has interpreted this item to form part of insurance service expense.
Item 2.2
Item 2.2 insurance service expenses from inwards reinsurance is a derived item calculated as the sum of items 2.2.1 to 2.2.6 inclusive.
Item 2.2.1
Report incurred claims from inwards reinsurance.
Item 2.2.2
Report other insurance service expenses from inwards reinsurance.Report insurance acquisition cash flows that have been recognised as expenses when incurred under AASB 17.59(a) at this item.
Item 2.2.3
Report amortisation of insurance acquisition cash flows from inwards reinsurance.
Item 2.2.4
Report losses and reversal of losses on onerous contracts from inwards reinsurance.Report this item in accordance with AASB 17.47-52.
Item 2.2.5
Report changes that relate to past service: changes to liabilities for incurred claims from inwards reinsurance.Report this item in accordance with AASB 17.103 (b) (iii) Disclosure.
Item 2.2.6
Report impairment losses/reversals on assets for insurance acquisition cash flows from inwards reinsurance.Report this item in accordance with AASB 17 Appendix A, AASB 17.28B, AASB 17.28E and AASB 17.28F. APRA has interpreted this item to form part of insurance service expense.
Insurance service result before reinsurance contracts held
Item 3
Item 3 insurance service result before reinsurance contracts held is a derived item and is calculated as the sum of item 1 and item 2.Report this item in accordance with AASB 17 Appendix A.
Allocation of reinsurance premiums
Item 4
Report allocation of reinsurance premiums.It is requested that the entity present this item separately from amounts recoverable from reinsurers reported at item 5.Report this item in accordance with AASB 17.86.
Amounts recoverable from reinsurers
Item 5
Report amounts recoverable from reinsurers. Include at this item reversals of recoveries of losses from the reinsurance contracts determined in accordance with AASB 17.66B for reinsurance contracts held.Report this item in accordance with AASB 17.86.The amount reported at this item should reconcile to item 8. ‘Amounts recoverable from reinsurers’ reported in Part B: Reinsurance contracts held (outwards reinsurance by cedant/retrocedent) Liability Roll Forward 1 – Reconciliation of the remaining coverage and incurred claims of Reporting Standard GRS 320.0.G Liability Roll Forwards (GRS 320.0.G Part B RF1).
Net expense from reinsurance contracts held
Item 6
Item 6 is a derived item and is calculated as the sum of item 4 and item 5. This item can be a net income or net expense.Report this item in accordance with AASB 17 Appendix A, AASB 101.82 (ac), AASB 17.82 and AASB 17.86.
Insurance service result
Item 7
Item 7 insurance service result is a derived item and is calculated as the sum of item 3 and item 6.Report this item in accordance with AASB 17.80 (a).
Balance sheet memo items
APRA intends to collect General Measurement Model (GMM) and Premium Allocation Approach (PAA) liability for remaining coverage and liability for incurred claims, GMM contractual service margin and risk adjustment component by APRA product groups. APRA will use these items and the data items collected:
to form a view on profitability by APRA product groups,
to compare the accounting risk adjustment to the GPS 340 risk margin by APRA product groups, and
to understand drivers behind accounting liability movements by APRA product groups.
APRA appreciates this information required by APRA product groups may require allocation of the AASB 17 balance sheet items which may not be perfect. APRA requests that insurers to use the allocation principles to allocate the AASB 17 items into APRA product groups. The intent is that simple “allocation drivers” (deemed appropriate by the insurer) are used to allocate the AASB 17 items into product groups.
For clarity, the following items are defined based on AASB 17:
AASB 17 liability for remaining coverage as defined in AASB 17 Appendix A
AASB 17 liability for incurred claims as defined in AASB 17 Appendix A
AASB 17 contractual service margin as defined in AASB 17 Appendix A
AASB 17 risk adjustment for non-financial risk as defined in AASB 17 Appendix A
Note, GMM items in the table below can be zero.
Columns for Level 2 insurance group
Columns 1 to 25
Report the amount for Australian business by APRA product group.
Columns 26 - 33
These columns are not applicable to item 8.
Column 34 (Total business)
Report the total amount of columns 1-25.
Item 8.1
Insurance contract - AASB 17 GMM liabilities / assets for remaining coverageReport the amount of the liabilities / assets for remaining coverage for insurance contracts issued measured under AASB 17 GMM by APRA product groups.
Item 8.2
Insurance contract - AASB 17 PAA liabilities / assets for remaining coverageReport the amount of the liabilities / assets for remaining coverage for insurance contracts issued measured under AASB 17 PAA by APRA product groups.
Item 8.3
Insurance contract - AASB 17 GMM contractual service marginReport the amount of contractual service margin from insurance contracts issued measured under AASB 17 GMM (or core requirements) by APRA product groups.
Item 8.4
Reinsurance contract held - AASB 17 GMM assets / liabilities for remaining coverage.Report the amount of the assets/liabilities for remaining coverage for reinsurance contracts held measured under AASB 17 GMM (or core requirements) by APRA product groups.
Item 8.5
Reinsurance contract held - AASB 17 PAA assets / liabilities for remaining coverage.Report the amount of the assets/liabilities for remaining coverage for reinsurance contracts held measured under AASB 17 PAA by APRA product groups.
Item 8.6
Reinsurance contract held - AASB 17 GMM contractual service margin.Report the amount of contractual service margin for reinsurance contracts held measured under AASB 17 GMM (or core requirements) by APRA product groups.
Item 8.7
Insurance contract - AASB 17 GMM liabilities / assets for incurred claims – risk adjustment component.Report the amount of risk adjustment for non-financial risk for insurance contracts measured under AASB 17 GMM by APRA product groups.
Item 8.8
Insurance contract - AASB 17 GMM liabilities / assets for incurred claims – LIC / AIC excluding risk adjustment component.Report the amount of the liability / asset for incurred claims excluding risk adjustment for non-financial risk for insurance contracts measured under AASB 17 GMM by APRA product groups.
Item 8.9
Insurance contract - AASB 17 PAA liabilities / assets for incurred claims – risk adjustment component.Report the amount of risk adjustment for non-financial risk for insurance contracts measured under AASB 17 PAA by APRA product groups.
Item 8.10
Insurance contract - AASB 17 PAA liabilities / assets for incurred claims – LIC / AIC excluding risk adjustment component.Report the amount of the liability / asset for incurred claims excluding risk adjustment for non-financial risk for insurance contracts measured under AASB 17 PAA by APRA product groups.
Item 8.11
Reinsurance contract held – AASB 17 GMM assets / liabilities for incurred claims – risk adjustment component.Report the amount of risk adjustment for non-financial risk for reinsurance contracts held measured under AASB 17 GMM by APRA product groups.
Item 8.12
Reinsurance contract held – AASB 17 GMM assets / liabilities for incurred claims – AIC / LIC excluding risk adjustment component.Report the amount of the asset / liability for incurred claims excluding risk adjustment for non-financial risk for reinsurance contracts held measured under AASB 17 GMM by APRA product groups.
Item 8.13
Reinsurance contract held – AASB 17 PAA assets / liabilities for incurred claims – risk adjustment component.Report the amount of risk adjustment for non-financial risk for reinsurance contracts held measured under AASB 17 PAA by APRA product groups.
Item 8.14
Reinsurance contract held – AASB 17 PAA assets / liabilities for incurred claims – AIC / LIC excluding risk adjustment component.Report the amount of the asset / liability for incurred claims excluding risk adjustment for non-financial risk for reinsurance contracts held measured under AASB 17 PAA by APRA product groups.