Financial Sector (Collection of Data) (reporting standard) determination No. 18 of 2023

Reporting Standard GRS 400.0 Statement of Risk by Country

I, Michael Murphy, 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:

(a)    REVOKE Financial Sector (Collection of Data) (reporting standard) determination No. 21 of 2013, including Reporting Standard GRS 400.0 Statement of Risk by Country made under that Determination; and

(b)   DETERMINE Reporting Standard GRS 400.0 Statement of Risk by Country, in the form set out in the Schedule, which applies to the financial sector entities to the extent provided in paragraph 3 of the reporting standard.

Under section 15 of the Act, I DECLARE that the reporting standard shall begin to apply to those financial sector entities on 1 April 2023, and the revoked reporting standard shall cease to apply, on 1 April 2023.

This instrument commences on 1 April 2023.

Dated: 16 March 2023

Michael Murphy

General Manager – Chief Data Officer (Acting),

Technology and Data Division

Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given by section 5 of the Act.

Schedule

Reporting Standard GRS 400.0 Statement of Risk by Country comprises the document commencing on the following page.

Reporting Standard GRS 400.0

Statement of Risk by Country

Authority

1.             This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2.             Information collected in Form GRF 400.0 Statement of Risk by Country (GRF 400.0) is used by APRA for the purpose of prudential supervision including assessing compliance with the capital standards.

Application and commencement

3.             This Reporting Standard applies to all general insurers authorised under the Insurance Act 1973 (insurers). This Reporting Standard applies for reporting periods ending on or after 1 April 2023.  

Information required

4.             An insurer must provide APRA with the information required by Form GRF 400.0 for each reporting period.

Method of submission

5.             The information required by this Reporting Standard must be given to APRA:

(a)    in electronic format using an electronic method available on APRA’s website; or

(b)   by a method notified by APRA prior to submission.

Reporting periods and due dates

6.             Subject to paragraph 7, an insurer must provide the information required by this Reporting Standard:

(a)           in respect of each quarter based on the financial year of the insurer; and

(b)          in respect of each financial year of the insurer.

Note: The annual information required from an insurer by paragraphs 4, 5 and 6(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 principal auditor of the insurer must give the insurer a certificate relating to the yearly statutory accounts, and that certificate must contain statements of the auditor’s opinions on the matters required by the prudential standards to be dealt with in the certificate.

7.             If, having regard to the particular circumstances of an insurer, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by subparagraph 6(a) or 6(b), APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for the particular insurer.  

8.             The information required by this Reporting Standard in respect of an insurer must be provided to APRA:

(a)           within the time stated in Reporting Standard GRS 001 Reporting Requirements (GRS 001); or

(b)          in the case of information provided in accordance with paragraph 7, within the time specified by notice in writing.

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 referred to in subparagraph 6(b) must be provided to APRA by the time specified in GRS 001 (unless an extension of time is granted under GRS 001).

Quality control

9.             The information provided by an insurer under this Reporting Standard must be the product of systems, processes and controls that have been reviewed and tested by the Appointed Auditor of the insurer. This will require the Appointed Auditor to review and test the insurer’s systems, processes and controls designed to enable the insurer to report reliable financial information to APRA. This review and testing must be done on:

(a)           an annual basis or more frequently if necessary to enable the Appointed Auditor to form an opinion on the reliability and accuracy of data; and

(b)          at least a limited assurance engagement consistent with professional standards and guidance notes issued by the Auditing and Assurance Standards Board (AUASB) as may be amended from time to time, to the extent that they are not inconsistent with the requirements of Prudential Standard GPS 310 Audit and Related Matters.

10.         All information provided by an insurer under this Reporting Standard must be subject to systems, 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.         When an officer, or agent, of an insurer provides the information required by this Reporting Standard it will be necessary for an officer, or agent, to digitally sign the relevant information using a digital certificate acceptable to APRA.

12.         If an insurer provides the information required by this Reporting Standard through an agent who submits on the insurer’s behalf, the insurer must:

(a)           obtain from the agent a copy of the completed form with the information provided to APRA; and

(b)          retain the completed copy.

13.         An officer, or agent, of an insurer who submits the information under this Reporting Standard for, or on behalf of, the insurer must be authorised by either:

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

(b)          the Chief Financial Officer of the insurer.

Variations

14.         APRA may, by written notice to the insurer, vary the reporting requirements of Form GRF 400.0 in relation to that insurer.

Transition

15.         An insurer must report under the old reporting standard in respect of a transitional reporting period. For these purposes:

old reporting standard means the reporting standard revoked in the determination making this Reporting Standard; and

transitional reporting period means a reporting period under the old reporting standard:

(a)           which ended before the date of revocation of the old reporting standard; and

(b)          in relation to which the insurer was required, under the old reporting standard, to report by a date on or after the date of revocation of the old reporting standard.

Note: For the avoidance of doubt, if an insurer was required to report under an old reporting standard, and the reporting documents were due before the date of revocation of the old reporting standard, the insurer is still required to provide any overdue reporting documents in accordance with the old reporting standard.

Interpretation

16.         In this Reporting Standard (including the attachments):

(a)           unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard GPS 001 Definitions (GPS 001); and

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

APRA-authorised reinsurer means an insurer carrying on reinsurance business.  For the purposes of this definition, a Lloyd’s underwriter as defined under the Insurance Act is an APRA-authorised reinsurer if it carries on reinsurance business. The Australian Reinsurance Pool Corporation is also an APRA-authorised reinsurer for the purposes of this definition;

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

Chief Financial Officer means the chief financial officer of the insurer, by whatever name called;

financial year means the financial year (within the meaning in the Corporations Act 2001) of the insurer;

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.

general instruction guide refers to the general instruction guide set out in Attachment A of GRS 001;

Insurance Act means the Insurance Act 1973;

insurer means a general insurer within the meaning of section 11 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.

non-APRA-authorised reinsurer means any reinsurer that is not an APRA-authorised reinsurer;

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

reporting period means a period mentioned in subparagraph 6(a) or 6(b) or, if applicable, paragraph 7.

GRF_400_0 Statement of Risk by Country

These instructions must be read in conjunction with the general instruction guide.

Explanatory notes

Requirement for completion

This form only needs to be completed where the reporting insurer has business operations outside of Australia (i.e. where they have items of income, expense, assets, liabilities or capital outside of Australia).

Reporting by country / region

The appropriate information is to be reported by country or geographic region as specified on the form. This is reported according to where the items of income / expense are on risk, assets are invested, and liabilities are located.

Instructions for specific items

1.1.           Premium revenue: Direct

Refer to instructions for Premium revenue: Direct business in GRF 310.0 Income Statement (GRF 310.0).

1.2.           Premium revenue: Inwards reinsurance

Refer to instructions for Premium revenue: Inwards reinsurance in GRF 310.0.

2.1.        Reinsurance expense: Direct

Refer to instructions for Outwards reinsurance expense relating to current and prior years cover in GRF 310.0.  Report this item in relation to the direct business of the reporting insurer.

2.2.        Reinsurance expense: Inwards reinsurance

Refer to instructions for Outwards reinsurance expense relating to current and prior years cover in GRF 310.0.  Report this item in relation to the inwards reinsurance business of the reporting insurer.

3.1.        Claims expense relating to current and prior years: Direct

Refer to instructions for Claims expense: Associated with direct business: Paid claims, Claims expense: Associated with direct business: Movement in OCL and Gross claims expense in GRF 310.0.

3.2.        Claims expense relating to current and prior years: Inwards reinsurance

Refer to instructions for Claims expense: Associated with inwards reinsurance: Paid claims, Claims expense: Associated with inwards reinsurance: Movement in OCL and Gross claims expense in GRF 310.0.

4.         Reinsurance recoveries revenue relating to current and prior years

Refer to instructions for Reinsurance recoveries revenue relating to current and prior years in GRF 310.0.

5.         Investment income

Refer to instructions for Investment income on assets backing insurance liabilities and Investment income on shareholders' funds in GRF 310.0.

6.         Amounts recoverable on reinsurance contracts and outstanding claims

Refer to instructions for Item 2.4 Net amount recoverable from reinsurance contracts on outstanding claims and paid claims in GRF 300.0 Statement of Financial Position (GRF 300.0).

7.         Deferred acquisition costs

Refer to instructions for Item 9 Deferred acquisition costs in GRF 300.0.

8.         Deferred reinsurance expense

Refer to instructions for Item 8 Deferred reinsurance expense in GRF 300.0.

9.         Other reinsurance assets

Refer to instructions for Item 2.5 Other reinsurance assets in GRF 300.0.

10.      Investments

Refer to instructions for Item 3 Investments (related to GRF 114.4) in GRF 300.0.

11.      Other investments

Refer to instructions for Item 10 Total other investments in GRF 300.0.

12.      All other assets

This is a balancing item and is the value of all other assets not specifically reported in Items 6 to 11.

It is automatically calculated as Item 13 less the sum of Items 6 to 11.

13.      Total assets

This represents the total assets of the reporting insurer.

The total across all countries and regions should correspond to Item 13 in GRF 300.0.

14.      Unearned premium liability

Refer to instructions for Item 17 Unearned premium liability in GRF 300.0.

15.      Outstanding claims liabilities

Refer to instructions for Item 16 Outstanding claims liabilities in GRF 300.0.

16.      Borrowings / loan capital

This is the value, as at the relevant date, of borrowings, loan capital and hybrid securities as determined in accordance with Australian Accounting Standards.

Refer to instructions for Item 19 Total borrowings, Item 23.1 Loan capital and Item 23.2 Hybrid securities in GRF 300.0.

17.      Other liabilities

This is a balancing item and is the value of all other liabilities not specifically reported in Items 14 to 16.

It is automatically calculated as Item 18 less the sum of Items 14 to 16.

18.      Total liabilities

This represents the total liabilities of the reporting insurer.

The total across all countries and regions should correspond to Item 24 in GRF 300.0.