Subdivision Definitions - Financial Sector (Collection of Data) (reporting standard) determination No. 89 of 2023 - Definitions

Definitions

Terms highlighted in bold italics indicate that the definition is provided in these instructions.

Accident year	This refers to the financial year that the losses / claims associated with individual policies are incurred.
Accident year or underwriting year	This refers to whether the year associated is accident year or underwriting year.

Class of business

This refers to the direct or reinsurance classes of business in accordance with Prudential Standard GPS 001 Definitions (GPS 001).In respect of the ‘other’ class of business as per GPS 001 for direct business, the Appointed Actuary is required to determine the most appropriate category (i.e. category A, B or C) as per Table 1 of Attachment A in Prudential Standard GPS 115 Capital Adequacy: Insurance Risk Charge (GPS 115) that this business falls within. The choice must be based on the underlying risk characteristics of the business being written. The amounts reported in the other direct - category A, other direct - category B or other direct - category C line items are to follow this basis.For reinsurance business, the classes of business are to be aggregated by the category and reinsurance type as per Table 2 of Attachment A in GPS 115.

Direct business	This refers to insurance business written directly by the reporting insurer in accordance with the direct classes of business in GPS 001.

GPS 340 net OCL - undiscounted	This refers to the net outstanding claims liabilities (OCL) determined in accordance with Prudential Standard GPS 340 Insurance Liability Valuation (GPS 340) but on an undiscounted basis. For avoidance of doubt, the OCL includes claims handling expenses, is net of any reinsurance and non-reinsurance recoveries and including risk margin.

Movement in GPS 340 net OCL - undiscounted

This refers to a movement in GPS 340 net OCL - undiscounted amount, an increase is where the prior financial year provision is insufficient to pay for the losses associated with this particular accident year for direct writers of insurance and underwriting year for reinsurance writers. In these instances, the insurer increases the GPS 340 net OCL in the current financial year by adding additional provision to accommodate the losses associated with this particular prior accident year / underwriting year.A decrease in GPS 340 net OCL - undiscounted amount is where the prior financial year provision is more than is required to pay for the losses associated with this particular accident year / underwriting year. Claim payments are not to be classified as a decrease in the GPS 340 net OCL for the purposes of this table.

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