This instruction guide provides general This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.

This instruction guide provides general directions for completion of GRF 440.0 Claims Development Table.

Direct insurance business (excepting mortgage insurance) must be completed based on accident year. Reinsurance and mortgage insurance business must be completed on an underwriting year basis. In either case, the year will be based on the financial year of the insurer.

Audit requirements

The information provided under the form is not required to be audited. APRA will instead rely on the reconciliation to the APRA net provisions and the Financial Information Declaration signed by the chief executive officer (CEO) (by whatever name called, or for a foreign insurer, the local equivalent) and the chief financial officer (CFO) (by whatever name called, or for a foreign insurer, the local equivalent).

Reporting entities

Forms are to be completed for the following reporting entities where appropriate:

1. Branch operations of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);
2. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and
3. Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).

Unit of measurement

This form is to be presented in Australian currency, rounded to thousands of dollars, with no decimal place. Amounts denominated in foreign currency are to be converted to AUD in accordance with AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.

The general requirements of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ for translation are:

1. Foreign currency monetary items[1] outstanding at the reporting date must be translated at the spot rate[2] at the reporting date.
2. Foreign currency non-monetary items[3] that are measured at historical cost in a foreign currency must be translated using the exchange rate at the date of the transaction.
3. Foreign currency non-monetary items that are measured at fair value will be translated at the exchange rate at the date when fair value was determined.

Transactions arising under foreign currency derivative contracts at the reporting date must be prepared in accordance with AASB 139 ‘Financial Instruments: Recognition and Measurement’. However, those foreign currency derivatives that are not within the scope of AASB 139 ‘Financial Instruments: Recognition and Measurement’ (eg some foreign currency derivatives that are embedded in other contracts) remain within the scope of AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.