Insurance (prudential standard) determination No. 6 of 2010 - Prudential Standard GPS 113 - Capital Adequacy: Internal model-based method
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An insurer may apply to APRA for approval to use the IMB Method to calculate certain elements of its MCR, or the MCR for some business segments, while using the Prescribed Method[11] for the remaining elements or segments. APRA will consider applications that omit small or newly acquired business segments from the ECM, with Prescribed Method calculations for the omitted segments included in the RCM. Other partial use of the IMB Method will be approved only in exceptional circumstances.
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An insurer must provide APRA with appropriate information, both at the time of the initial application for approval to use the IMB Method and subsequent to obtaining IMB Method approval, on any parts of the business activities of the insurer for which it is proposed to use the Prescribed Method to calculate the MCR.