Financial Sector (Collection of Data) (reporting standard) determination No. 81 of 2008 GRS 310.2 (2008) Claims Expense and Reinsurance Recoveries (Cth)

Case

Financial Sector (Collection of Data) (reporting standard) determination No. 81 of 2008

Reporting Standard GRS 310.2 (2008) Claims Expense and Reinsurance Recoveries

Financial Sector (Collection of Data) Act 2001

I, Charles Watts Littrell, a delegate of APRA, under paragraph 13(1)(a) of the Financial Sector (Collection of Data) Act 2001 (the Act) and subsection 33(3) of the Acts Interpretation Act 1901:

  • REVOKE Reporting Standard GRS 310.2 (2007) Claims Expense and Reinsurance Recoveries which is in force as at the date of this determination (the old standard); and

  • DETERMINE Reporting Standard GRS 310.2 (2008) Claims Expense and Reinsurance Recoveries in the form set out in the Schedule (the new standard), which applies to the financial sector entities referred to in paragraph 2 of the new standard.

Under section 15 of the Act, I DECLARE that the new standard shall begin to apply, and the old standard shall cease to apply, on registration of this instrument on the Federal Register of Legislative Instruments.

Dated 16 October 2008

[Signed]

Charles Littrell

Executive General Manager

Policy, Research and Statistics

Interpretation

In this Determination

APRA means the Australian Prudential Regulation Authority.

Federal Register of Legislative Instruments means the register established under section 20 of the Legislative Instruments Act 2003
Schedule

Reporting Standard GRS 310.2 (2008) Claims Expense and Reinsurance Recoveries comprises the 21 pages commencing on the next page

Reporting Standard GRS 310.2 (2008)

Claims Expense and Reinsurance Recoveries

Objective of this reporting standard

This reporting standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001 (the Collection of Data Act). It requires general insurers (insurers), including foreign general insurers (foreign insurers) operating in Australia through branch operations, to report to APRA, generally on a quarterly and annual basis, claims expense and reinsurance recoveries.

This reporting standard outlines the overall requirements for the provision of this information to APRA.  It should be read in conjunction with Form GRF 310.2 Claims Expense and Reinsurance Recoveries (Form GRF 310.2) and the instructions to that form (which are attached and form part of this reporting standard).

Purpose

  1. Data collected in Form GRF 310.2 is used by APRA for the purpose of prudential supervision of insurers.

Application and commencement

  1. This reporting standard applies to all insurers for reporting periods commencing on or after 1 July 2008. 

Information required

  1. An insurer must provide APRA with the information required by Form GRF 310.2 for each reporting period.

Forms and method of submission

  1. The information required by this reporting standard must be given to APRA either:

(a)in electronic form using the ‘Direct to APRA’ application, applying one of the electronic submission mechanisms under that application; or

(b)by manually completing Form GRF 310.2 on paper and mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales.

Where the information is submitted by means of an agent to whom the insurer has outsourced the function of providing the information on the insurer’s behalf, the agent may only provide the information in accordance with subparagraph 4(b) if the agent has contacted APRA and advised that the agent cannot submit the information in electronic form under subparagraph 4(a).

Note: the Direct to APRA application software and paper forms may be obtained from APRA. 

Reporting periods and due dates

  1. Subject to paragraph 6, an insurer must provide the information required by this reporting standard:

(a)in respect of each quarter based on the financial year (within the meaning of the Corporations Act 2001) of the insurer; and

(b)in respect of each financial year (within the meaning of the Corporations Act 2001) of the insurer.

Note: The annual information required by paragraph 3 read with subparagraph 5(b), together with certain annual information required by other reporting standards, will form part of the insurer’s yearly statutory accounts within the meaning of section 3 of the Insurance Act 1973 (the Insurance Act). This means that the information must be audited in accordance with paragraph 49J(1)(a) of the Insurance Act. Under subsection 49J(3), the auditor must give the insurer a certificate relating to the yearly statutory accounts, and that certificate must specify the matters provided for in the prudential standards.

  1. APRA may, by notice in writing, change the reporting periods, or specified reporting periods, for a particular insurer to require it to provide the information:

(a)more frequently (if, having regard to the particular circumstances of the insurer, APRA considers it necessary or desirable to obtain information more frequently for the purposes of the prudential supervision of the insurer); or

(b)less frequently (if, having regard to the particular circumstances of the insurer and the extent to which it requires prudential supervision, APRA considers it unnecessary to require the insurer to provide the information as frequently as provided by subparagraph 5(a) or (b)).

  1. The information required by paragraph 3 of this reporting standard from an insurer must be provided to APRA by the following times:

(a)in the case of the quarterly information required by subparagraph 5(a) – 20 business days after the end of the reporting period to which the information relates; and

(b)in the case of the annual information required by subparagraph 5(b) – 4 months after the end of the reporting period to which the information relates.

Note: Paragraph 49L(1)(a) of the Insurance Act provides that the auditor’s certificate required under subsection 49J(3) of that Act must be lodged with APRA in accordance with the prudential standards. The prudential standards provide that the certificate must be submitted to APRA together with the yearly statutory accounts. Accordingly, the auditor’s certificate relating to the annual information required by paragraph 3 read with subparagraph 5(b) must be provided to APRA by the time specified in subparagraph 7(b) of this reporting standard (unless an extension is granted under paragraph 8).

  1. APRA may grant an insurer an extension of a due date in writing, in which case the new due date for the provision of the information will be the date on the notice of extension.

Quality control

9.       The information provided by an insurer under this reporting standard must be the product of processes and controls that have been reviewed and tested by the appointed auditor of the insurer. This will require the auditor to review and test the systems, processes and controls supporting the reporting of the information to ensure that they produce accurate data and are otherwise reliable.  This review and testing must be done on an annual basis or more frequently if necessary to enable the appointed auditor to form an opinion on the accuracy and reliability of the data. 

10      The information provided by an insurer under this reporting standard must be subject to processes and controls developed by the insurer for the internal review and authorisation of that information. It is the responsibility of the board and senior management of the insurer to ensure that an appropriate set of policies and procedures for the authorisation of data submitted to APRA is in place.

Authorisation

11.     If the officer of an insurer provides the information required by this reporting standard:

(a)under subparagraph 4(a), the officer must digitally sign, authorise and encrypt the information (for which purpose APRA’s certificate authority will issue digital certificates, for use with the ‘Direct to APRA’ application, to officers of the insurer who have authority from the insurer to transmit data to APRA); or

(b)under subparagraph 4(b), the completed form must be signed in accordance with paragraph 13.

12.     If an insurer provides the information required by this reporting standard through an agent under either subparagraphs 4(a) or (b), the agent will not be required to sign or authorise the information.  However, the insurer must:

(a)obtain from the agent a paper copy of the completed form as provided to APRA (whether it was provided under subparagraph 4(a) or (b)); and

(b)cause the paper copy to be signed in accordance with paragraph 13; and

(c)lodge the signed paper copy with APRA by mailing the completed form to APRA’s head office at Level 26, 400 George Street, Sydney, New South Wales, by the relevant due date (unless APRA, in writing, waives the requirement to lodge the signed paper copy with APRA by varying this reporting standard in relation to the insurer).

Note: APRA may, for example, determine to waive the requirement under subparagraph 12(c) where an insurer has undertaken to retain the signed copy of the completed form for an agreed period of time.

13.     If information under this reporting standard is provided in paper form, it must be signed on the front page of the relevant completed form by either:

(a)the Principal Executive Officer of the insurer; or

(b)the Chief Financial Officer of the insurer (whatever his or her official title may be).

Minor alterations to forms and instructions

  1. APRA may make minor variations to the instructions to a form, to clarify their application to the form without changing any substantive requirement in the form or instructions.

  1. If APRA makes such a variation it must notify insurers in writing.

Transition

  1. An insurer must report in relation to a reporting period ending prior to 1 July 2008 in accordance with the reporting standard that this reporting standard replaced.   

Interpretation

  1. In this reporting standard:

appointed auditor means an auditor appointed under paragraph 39(1)(a) of the Insurance Act;

business days means ordinary business days, exclusive of Saturdays, Sundays and public holidays;

capital standards means the prudential standards which relate to capital adequacy as defined in Prudential Standard GPS 001 Definitions;

foreign insurer means a foreign general insurer within the meaning of the Insurance Act;

Note: A reference to a ‘branch’ or ‘branch operation’ is a reference to the Australian operations of a foreign insurer.

Insurance Act means the Insurance Act 1973;

insurer means a general insurer within the meaning of the Insurance Act;

Note: In the forms and instructions, a reference to an ‘authorised insurer’, ‘authorised insurance entity’ or ‘licensed insurer’ is a reference to an insurer, and a reference to an ‘authorised reinsurance entity’ is a reference to an insurer whose business consists only of undertaking liability by way of reinsurance.

Principal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the insurer;

reporting period means a period mentioned in subparagraph 5(a) or (b) or, if relevant, paragraph 6.

  1. A reference to a prudential standard means the prudential standard, made under section 32 of the Insurance Act, mentioned in the reference, as amended from time to time. If the prudential standard has been revoked and replaced, the reference shall be taken to be to the prudential standard that has replaced it.

Reporting Form GRF 310.2

Claims Expense and Reinsurance Recoveries

Instruction Guide

Introduction

The purpose of this form is to provide information on the following:

  1. Claims expense by class of business (direct business and reinsurance), broken down into the following components:

·claim payments made in the current year

·movements in Outstanding Claims Provision (OCP)

·movements in Premium Liabilities (PL)

  1. Reinsurance recoveries revenue by class of business (direct business and reinsurance), broken down into the following components:

·reinsurance recoveries relating to current and prior years

·reinsurance recoveries relating to future years

  1. Recoveries other than reinsurance by class of business (direct business and reinsurance), broken down into the following components:

·other recoveries revenue relating to current and prior years

·other recoveries revenue relating to future years

  1. Reinsurance recoveries received based on cashflows (i.e. payments received rather than accrued); and

  1. Claims paid based on cashflows (i.e. actually paid rather than accrued).

Audit requirements

The form relating to authorised insurance entities and reinsurance entities is required to be subject to audit review and testing.

The scope and nature of audit testing required is outlined in the applicable Auditing and Assurance Guidance Statement issued by the Auditing and Assurance Standards Board.

Information provided in the form in respect of a financial year of an insurer forms part of the insurer’s ‘yearly statutory accounts’ within the meaning of section 3 of the Insurance Act 1973.  This means that:

  • the completed form for the financial year must be audited by the Appointed Auditor of the insurer (see paragraph 49J(1)(a) of the Act);  

  • the insurer must make such arrangements as to enable the auditor to do this (subsection 49J(2)); 

  • the auditor must give the insurer a certificate relating to the completed form (and other completed forms that are part of the insurer’s yearly statutory accounts), which must contain statements of the auditor’s opinion on the matters required by the prudential standards to be dealt with in the certificate (subsection 49J(3)); 

  • the certificate must be lodged with APRA as provided for in the prudential standards (paragraph 49L(1)(a)), namely by the due date for lodging the form in respect of the financial year for the insurer.

Reporting entity

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

  1. Branch insurers of a foreign parent insurer (reference to licensed insurer in the form means total operations of the branch, excluding the parent operations);

  1. Authorised insurance entities, including mutual entities (reference to licensed insurer in the form means total operations of the licensed entity); and

  1. Authorised reinsurance entities (reference to licensed insurer in the form means total operations of the licensed entity).

Definitions

Definitions for data reporting items required by this form have been provided where possible in the instructions under the section headed ‘Specific Instructions’. .

Unit of measurement

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.

    [1]           Monetary items are defined to mean units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency.

    [2]           Spot rate means the exchange rate for immediate delivery.

  1. 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]           Examples of non-monetary items include amounts prepaid for goods and services (e.g. prepaid rent); goodwill; intangible assets; physical assets; and provisions that are to be settled by the delivery of a non-monetary asset.

  1. 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’ (e.g. 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’.

For APRA purposes equity items must be translated using the foreign currency exchange rate at the date of investment or acquisition. Post acquisition changes in equity are required to be translated on the date of the movement. 

As foreign currency derivatives are measured at fair value, the currency derivative contracts are translated at the spot rate at the reporting date.  

Exchange differences should be recognised in profit and loss in the period which they arise. For foreign currency derivatives, the exchange differences would be recognised immediately in profit and loss if the hedging instrument is a fair value hedge. For derivatives used in a cash flow hedge, the exchange differences should be recognised directly in equity.

The ineffective portion of the exchange differences in all hedges would be recognised in profit and loss.

  1. Translation of financial reports of foreign operations.

A foreign operation is defined in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’ as meaning an entity that is a subsidiary, associate, joint venture or branch of a reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.

·Exchange differences relating to foreign currency monetary items that form part of the net investment of an entity in a foreign operation, must be recognised as a separate component of equity.

·Translation of financial reports should otherwise follow the requirements in AASB 121 ‘The Effects of Changes in Foreign Exchange Rates’.

Reporting period

Insurers are required to report the information in the reporting form on a quarterly and annual basis.

  • The quarterly information is to be completed in respect of each quarter based on the financial year of the insurer, not the calendar year.

  • The annual information is to be completed in respect of the financial year of the insurer.

  • The financial information requested in this form is to be reported as at the last day of the reporting period on a financial year to date basis of the insurer.

Reporting lag

This form must be lodged for each of the reporting units, within the number of business days after the end of the quarter as set out in Reporting Standard GRS 310.2 Claims Expense and Reinsurance Recoveries.

Basis of preparation

Unless specifically mentioned in these instructions insurers should not follow the recognition and measurement requirements of the Australian accounting standards in completing this form.

The interpretation and required measurement basis for items listed in the form are specified in these instructions.

Netting

Unless otherwise specifically stated, institutions are allowed to take advantage of netting agreements in relation to disclosure of data items in this form. Institutions are to comply with the prerequisite for netting outlined in Australian accounting standards AASB7 ‘Financial Instruments: Disclosures’, AASB 139 ‘Financial Instruments: Recognition and Measurement’ and AASB 132 ‘Financial Instruments: Presentation’.

Related party disclosure

Amounts due from, loans to, debentures of, shares in, or units in a trust or body corporate that is related to the insurer are to be disclosed for items of assets and liabilities where indicated in the form. For the purposes of this form, related bodies corporate are to be interpreted consistently with the meaning as in AASB 124 ‘Related Party Disclosures’.

In accordance with AASB 124, related party means a party that directly or indirectly through one or more intermediaries:

(a)controls, is controlled by or is under common control with, the entity (this includes parents, subsidiaries and fellow subsidiaries);

(b)has significant influence over the entity or has joint control over the entity; or

(c)is an associate (as defined in AASB 128 ‘Investments in Associates’) of the entity; or

(d)is a joint venture in which the entity is a venturer (see AASB 131 ‘Interests in Joint Ventures’); or

(e)is a member of the key management personnel of the entity or its parent; or

(f)is a close member of the family of any individual referred to in (a), (b) or (e); or

(g)is an entity that its controlled, jointly controlled or significantly influenced by, or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (e) or in (f); or

(h)is a post-employment benefit plan for the benefit of the employees of the entity, or of any entity that is a related party of the entity.

Specific instructions

Classes of Insurance Business

  1. Direct Business

The classes of business for companies that are not specialist reinsurers are as follows:

  1. Houseowners/Householders (H & H)

This class covers the common H & H policies inclusive of:

  • Contents;

  • Personal property;

  • Arson; and

  • Burglary. 

Public liability normally attaching to these products are to be separated and included in Public and Product Liability class of business – item (XIII).

  1. Commercial Motor Vehicle

Motor vehicle insurance (including third party property damage) other than insurance covering vehicles defined below under Domestic Motor Vehicle. It includes long and medium haul trucks, cranes and special vehicles and policies covering fleets.

  1. Domestic Motor Vehicle

Motor vehicle insurance (including third party property damage) covering private use motor vehicles including utilities and lorries, motor cycles, private caravans, box and boat trailers and other vehicles not normally covered by business or commercial policies.

  1. Travel

Insurance against losses associated with travel including loss of baggage and personal effects, losses on flight cancellations and overseas medical costs.

  1. Fire and Industrial Special Risks (ISR)

Fire

Includes all policies normally classified as 'Fire' and includes:

  • sprinkler leakage;

  • subsidence;

  • windstorm;

  • hailstone;

  • crop;

  • arson; and

  • loss of profits and any extraneous risk normally covered under fire policies, e.g. flood.

ISR

Standard policy wordings exist for this type of policy.  All policies which contain such standard wordings or where the wording is substantially similar are to be classified as ISR.

  1. Marine

Includes Marine Hull (including pleasure craft), Marine Cargo (including sea and inland transit insurance).

  1. Aviation

Aviation (including aircraft hull and aircraft liability).

(VIII).Mortgage

Insurance against losses arising from the failure of debtors to meet financial obligations to creditors or under which payment of debts is guaranteed.  It includes lease guarantee.

  1. Consumer Credit (CCI)

Insurance to protect a consumer's ability to meet the loan repayments on personal loans and credit card finance in the event of death or loss of income due to injury, illness or unemployment.

  1. Other Accident

Includes the following types of insurance:

  • Miscellaneous accident (involving cash in transit, theft, loss of money);

  • All risks (baggage, sporting equipment, guns);

  • Engineering when not part of ISR or Fire policy;

  • Plate glass when not part of packaged policy (e.g. houseowners /householders)

  • Guarantee (Insurance Bonds);

  • Live Stock;

  • Pluvius; and

  • Sickness and Accident (which provides stated benefits where the insured is killed or suffers loss of specific parts of the body or is prevented from carrying out the insured’s normal occupation.  In addition, regular benefits may be paid over a short period of time (typically less than 3 years), noting that continuous disability policies are now considered to be Life Insurance Policies and should not be provided by general insurance companies).

  1. Other

All other insurance business not specifically mentioned elsewhere.  It includes, for example:

  • All guarantees (e.g. fidelity Guarantee)

  • Trade Credit;

  • Extended Warranty (includes insurance by a third party for a period in excess of the manufacturer's or seller’s normal warranty;

  • Kidnap and Ransom; and

  • Contingency.

  1. Compulsory Third Party Motor Vehicle (CTP)

This class consists only of CTP business.

(XIII).Public and Product Liability

  • Public Liability covers legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured's business.  Product Liability includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods. and also environmental clean-up caused by pollution spills where not covered by Fire and ISR policies.

  • Also will include builders warranty insurance.

  • Includes public liability attaching to houseowners/householders policies.

(XIV).Professional Indemnity (PI)

Includes Directors' and Officers' liability insurance plus legal expense insurance. Cover for legal expenses is generally included in this type of policy.

  1. Employers' Liability (EL)

Includes:

  • Workers' compensation;

  • Seamen's compensation; and

  • Domestic workers compensation.

  1. Reinsurance Business

The classes of business for companies that provide reinsurance are as follows:

Treaty Proportional:  This refers to all forms of quota share and surplus reinsurance written on a treaty reinsurance arrangement where the reinsurer is bound to accept all business ceded by the reinsured subject to the terms and conditions of the pre-agreed treaty wording, and shares in the same proportion of premium and losses of the reinsured.

Treaty Excess of Loss:  This refers to all reinsurance arrangements where the reinsurer is bound to accept all business ceded by the reinsured and the reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.

Facultative Proportional:  This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis and the reinsurer shares in the same proportion of premium and losses of the reinsured.

Facultative Excess of Loss:  This refers to non-treaty arrangements where each reinsurance contract is on an individual offer and acceptance basis.  The reinsurer pays losses only above an agreed predetermined limit (retention) up to an agreed maximum amount.

Reinsurance non-split:  This line item classification disclosed under Reinsurance class of business is to be used where it is not possible for the insurer to separately split out all the classes of reinsurance businesses.

Where an insurer writes inwards reinsurance which spans multiple classes and the insurer cannot readily split the contract between classes, the contract must be allocated using an appropriate method, including the following methods:

(a)allocate the contract to the category which represents the greatest exposure; or

(b)allocate the contract to the category representing the greatest premium income.

An insurer that underwrites inwards reinsurance is free to choose which of the above methods it uses, or may use another appropriate method, provided the same method is used for all contracts and all subsequent periods.

Claims expense

Claims expense for the purpose of this form is reported in relation to the following:

  • claim payments made in the current year,

  • movements in Outstanding Claims Provision, and

  • movements in Premium Liabilities.

The column “Total gross claims expense” is calculated automatically and is derived from the above components in the following way:

  • claim payments made in the current year

Plus:

  • OCP at the end of the reporting period

Less:

  • OCP at beginning of financial year

Plus:

  • PL at the end of the reporting period

Less:

  • PL at beginning of financial year

Note: All components required for the calculation of “Total gross claims expense” are to be reported gross of reinsurance recoveries and non-reinsurance recoveries.

Claims expense that relate to movements in the OCP and PL are to be based on the OCP and PL that are reported in GRF 300.0 Statement of Financial Position. The OCP and PL reported in the Statement of Financial Position does not have to be equal to, but must not be less than, the respective amounts required by GPS 310 Audit and Actuarial Reporting and Valuation and hence the amounts reported in the forms GRF 210.0 Outstanding Claims Provision - Insurance Risk Charge and GRF 210.1 Premium Liabilities - Insurance Risk Charge.

The total amount of claims expense reported in this form must match the total claims expense reported in line item called “Gross Claims Expense” in GRF 310.0 Statement of Financial Performance.

The claims expense is to be disclosed by type of business (i.e. direct business and inwards reinsurance business).

Reinsurance recoveries

Report the amount of reinsurance recoveries in relation to claims recognised in the calculation of the gross claims expense broken down into the following components:

  • reinsurance recoveries revenue relating to current and prior years

  • reinsurance recoveries revenue relating to future years

The total amount reported in this form for each of these components must match the corresponding item reported in GRF 310.0 Statement of Financial Performance.

Each component of reinsurance recoveries is to be disclosed by type of business (i.e. direct business and inwards reinsurance business).

Recoveries other than reinsurance

Report the amount of recoveries other than reinsurance in relation to claims recognised in the calculation of the gross claims expense broken down into the following components:

  • other recoveries revenue relating to current and prior years

  • other recoveries revenue relating to future years

Each component of recoveries other than reinsurance is to be disclosed by type of business (i.e. direct business and inwards reinsurance business).  

Reinsurance recoveries received - cashflow basis (as a proxy the basis required by AASB 107 ‘Cash Flow Statements’ can be used)

Report the amount of reinsurance recoveries received over the reporting period (on a year-to-date basis) in aggregate for direct business and inwards reinsurance business (i.e. disclosure in relation to individual class of business is not required).  Do not include reinsurance recoveries recognised on an accrual basis, as that is recognised in columns titled “Reinsurance recoveries revenue relating to current and prior years” and “Reinsurance recoveries relating to future years”.

This relates to all reinsurance recoveries received on a cashflow basis in the current financial year, regardless of the financial year in which the reinsurance recovery may have been recognised as revenue (i.e. a prior financial year).

Claims paid - cashflow basis (as a proxy the basis required by AASB 107 can be used)

Report the amount of claims actually paid over the reporting period (on a year-to-date basis) in aggregate for direct written business and inwards reinsurance business (i.e. disclosure of claims paid in relation to individual class of business is not required). This relates to all claims paid on a cashflow basis in the current financial year, regardless of the financial year in which the claim may have been recognised as an expense (i.e. a prior financial year).

Gross claims paid/recoveries received to/from related entities

  1. Parent entity

For total gross claims expense, reinsurance recoveries and recoveries other than reinsurance reported in this form, disclose amounts that are with/from the parent entity of the licensed insurer.

  1. Controlled entities/Controlled entities of the parent entity

For branches, the line item “Controlled entities/Controlled entities of the parent entity” is to be interpreted as amounts in relation to “Controlled entities of the parent entity”, and for licensed insurance entities amounts are in relation to “Controlled entities” of the reporting insurer.

For total gross claims expense, reinsurance recoveries and recoveries other than reinsurance reported in this form, disclose amounts that are with/from the controlled entities.

  1. Associates/Joint Ventures

For total gross claims expense, reinsurance recoveries and recoveries other than reinsurance reported in this form, disclose amounts that are with/from Associates or Joint Ventures of the licensed insurer. Associates and Joint Ventures are defined in accordance with AASB 131 ‘Interests in Joint Ventures’ and AASB 128 ‘Investments in Associates’.

  1. Other related parties

For total gross claims expense, reinsurance recoveries and recoveries other than reinsurance reported in this form, disclose amounts that are with/from any other related entity of the licensed insurer that are not specifically identified above. Refer to the definition of related parties as defined in the general section of this instruction guide.


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