Insurance (prudential standard) determination No. 6 of 2010 - Prudential Standard GPS 113 - Capital Adequacy: Internal model-based method
ApplicationApplication
Start here
Get a plain-English read of Application
Turn the raw legal text into a practical explanation grounded in Insurance (prudential standard) determination No. 6 of 2010 - Prudential Standard GPS 113 - Capital Adequacy: Internal model-based method.
Application
- This Prudential Standard applies to:
(a) insurers[1]; and
(b) authorised NOHCs[2].
-
An insurer or authorised NOHC may choose to apply to APRA for approval[3] to use the Internal Model-based Method (IMB Method) to determine the Minimum Capital Requirement (MCR), in accordance with either Prudential Standard GPS 110 Capital Adequacy (GPS 110)[4] or Prudential Standard GPS 111 Capital Adequacy: Level 2 Insurance Groups (GPS 111)[5] , in which case this Prudential Standard applies to the insurer or Level 2 insurance group as the case may be. Where an application relates to the capital adequacy of a Level 2 insurance group, the appropriate applicant will be the parent entity.
-
An insurer or parent entity that chooses to apply for approval to use the IMB Method must comply with this Prudential Standard and continue to comply with GPS 110 or GPS 111 at all times. This standard is effective from 1 July 2010.