
Financial Sector (Collection of Data) (reporting standard) determination No. 106 of 2023
Reporting Standard HRS 117.0 Asset Concentration Risk Charge
Financial Sector (Collection of Data) Act 2001
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, determine Reporting Standard HRS 117.0 Asset Concentration Risk Charge, 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 the day it is registered on the Federal Register of Legislation.
This instrument commences upon registration on the Federal Register of Legislation.
Dated: 18 May 2023
Michael Murphy
General Manager - Chief Data Officer (Acting)
Technology and Data Division
Interpretation
In this Determination:
APRA means the Australian Prudential Regulation Authority.
Federal Register of Legislation means the register established under section 15A of the Legislation Act 2003.
financial sector entity has the meaning given by section 5 of the Act.
Schedule
Reporting Standard HRS 117.0 Asset Concentration Risk Charge comprises the document commencing on the following page.

Reporting Standard HRS 117.0
Asset Concentration Risk Charge
Objective of this Reporting Standard
Authority
1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.
Purpose
2. The information reported to APRA under this Reporting Standard is used by APRA for the purpose of prudential supervision including assessing compliance with capital standards.
Application and commencement
3. This Reporting Standard applies to all private health insurers. This Reporting Standard applies for reporting periods ending on or after 1 July 2023.
Information required
4. A private health insurer must provide APRA with the information required by this Reporting Standard 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, a private health insurer must provide the information required by this Reporting Standard:
(a) in respect of each calendar quarter (i.e. the periods ending 30 September, 31 December, 31 March and 30 June); and
(b) in respect of each year ending 30 June.
7. If, having regard to the particular circumstances of a private health 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 private health insurer.
8. The information required by this Reporting Standard must be provided to APRA:
(a) in the case of quarterly information, within 28 calendar days after the end of the reporting period to which the information relates;
(b) in the case of annual information, by 30 September each year; or
(c) in the case of information provided in accordance with paragraph 7, within the time specified by notice in writing.
9. APRA may, in writing, grant a private health insurer an extension of a due date, in which case the new due date will be the date on the notice of extension.
Note: For the avoidance of doubt, if the due date for a particular reporting period falls on a day other than a usual business day, a private health insurer is nonetheless required to submit the information required no later than the due date.
Quality control
10. All information provided by a private health insurer under this Reporting Standard must be subject to systems, processes and controls developed by the private health insurer for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the private health insurer to ensure that an appropriate set of policies and procedures for the authorisation of information submitted to APRA is in place.
Annual audit requirements
11. The information submitted for the purposes of paragraph 8(b) is to be subject to external audit to ensure consistency with the private health insurer’s statutory financial accounts and faithful application of the capital standards.
12. Audit certification and opinion must be provided to APRA by 30 September each year.
13. If a private health insurer received a qualified auditor’s report for a health benefits fund, the general fund, or the private health insurer for the year previous to the year for which the report is provided, the report for the year for which the report is provided must state whether the auditor has examined the issues identified and is satisfied that the private health insurer has taken the appropriate steps to rectify the matters raised in the previous report.
14. The auditor’s report must:
(a) state details of the program adopted to carry out the audit; and
(b) include the name of, and be signed by, the auditor who takes responsibility for the accuracy of the report.
Authorisation
15. A person who submits the information required under this Reporting Standard must be suitably authorised by an officer of the private health insurer.
Variations
16. APRA may, in writing, vary the reporting requirements of this Reporting Standard in relation to a private health insurer.
Interpretation
17. In this Reporting Standard:
(a) unless the contrary intention appears, words and expressions have the meanings given to them in Prudential Standard HPS 001 Definitions (HPS 001); and
(b) the following definitions are applicable:
APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998;
capital standards means the prudential standards which relate to capital adequacy as defined in HPS 001;
officer has the same meaning as in the Act;
private health insurer has the same meaning as in the Act;
reporting period means a period mentioned in paragraph 6 or, if applicable, paragraph 7; and
the Act means the Private Health Insurance (Prudential Supervision) Act 2015.
18. Unless the contrary intention appears, a reference to an Act, Prudential Standard, Reporting Standard, Australian Accounting or Auditing Standard is a reference to the instrument as in force from time to time.
Specific instructions
Table 1: Large Exposures
Reporting threshold
This section is to be completed for each exposure to an asset, a counterparty or a group of counterparties that is greater than 10 per cent of the capital base of the health benefits or general fund. Where the aggregate exposure to a group of related counterparties is over the 10 per cent threshold, report the exposure to each individual counterparty separately, even if the individual exposure is less than the threshold.
Collateral and guarantees
For exposures that are supported by collateral, guarantees or letters of credit (eligible credit support):
· If the exposure is covered by more than one collateral / guarantee / letter of credit, split the original exposure into multiple rows for each eligible credit support applicable.
· If the eligible credit support provided does not cover the full value of the exposure, split the original exposure into multiple rows: one for the part that is covered, and one for the part that remains uncovered.
Units of measurement
Report values in whole Australian dollars.
| Name | Valid values | Description |
1 | Private Health Insurer Fund Type | · Health benefits fund · General fund | Report the private health insurer fund type. |
2 | Private Health Insurer Fund Name | Free text | Report the name of the private health insurer fund. This is in the event an insurer has multiple health benefits funds. In the event an insurer has only one health benefits fund, its name should be the same as the insurer. For the general fund, report the same name as the insurer. |
3 | Counterparty Name | Free text | Report the counterparty name. |
4 | Counterparty Group Name | Free text | Report the counterparty group name. Where the counterparty does not belong to a group, enter the counterparty name. |
5 | Counterparty ACN, ABN or ARBN | 9 digit valid ACN, 11 digit valid ABN or 9 digit valid ARBN | Report the counterparty ACN, ABN or ARBN. Report the ACN of the reported counterparty. In cases where a counterparty does not have an ACN but it does have an ABN or an ARBN, report the ABN or ARBN. Input the number without spaces. If a counterparty does not have an ACN, ABN, or ARBN leave the column blank. |
6 | Reinsurance Or Non-Reinsurance Exposure Type | · Reinsurance · Non-reinsurance · Combination of multiple exposures | Report the reinsurance or non-reinsurance exposure type. |
7 | Reinsurance Or Non-Reinsurance Exposure Type Description | Free text | Describe the reinsurance or non-reinsurance exposure type. |
8 | Non-APRA Authorised Reinsurer Indicator | · Yes · No | Indicate whether the counterparty is a non-APRA authorised reinsurer. |
9 | Related Party Type | · Parent · Controlled entity · Associate / Joint venture · Other related party · Not applicable | Report the related party. If exposure is not to a related party, report as Not applicable. |
10 | Counterparty Grade Type | · Grade 1 · Grade 2 · Grade 3 · Grade 4 · Grade 5 · Grade 6 · Grade 7 | Report the counterparty grade type. |
11 | Name Of Provider Of Eligible Credit Support | Free text | Report the name of provider of eligible credit support. If no eligible credit support is provided, report Not applicable. |
12 | Counterparty Grade After Eligible Credit Support | · Grade 1 · Grade 2 · Grade 3 · Grade 4 · Grade 5 · Grade 6 · Grade 7 · Not applicable | Report the counterparty grade after eligible credit support. If no eligible credit support is provided, report Not applicable. |
13 | On-Balance Sheet Large Exposure Amount | Whole dollars | Report the on-balance sheet large exposure amount. |
14 | Off-Balance Sheet Large Exposure Amount | Whole dollars | Report the off-balance sheet large exposure amount. |
Table 2: Asset Concentration Risk Charge - Reinsurance Exposures
Reporting threshold
This section is to be completed for each exposure to a group of related counterparties that will trigger an Asset Concentration Risk Charge limit amount as specified in HPS 117.
Reinsurance exposures
Reinsurance exposures must be reported in the following order for each group of related counterparties:
· Combine all exposures to Grade 5 and below; and
· Combine all exposures to Grade 4.
Units of measurement
Report values in whole Australian dollars.
| Name | Valid values | Description |
1 | Private Health Insurer Fund Type | · Health benefits fund · General fund | Report the private health insurer fund type. |
2 | Private Health Insurer Fund Name | Free text | Report the name of the private health insurer fund. This is in the event an insurer has multiple health benefits funds. In the event an insurer has only one health benefits fund, its name should be the same as the insurer. For the general fund, report the same name as the insurer. |
3 | Counterparty Group Name | Free text | Report the counterparty group name. |
4 | Eligible Credit Support Applied Indicator | · Yes · No | Report the eligible credit support applied indicator. |
5 | Asset Exposure Category After Eligible Credit Support | · Grade 4 · Grade 5, 6 or 7 | Report the asset exposure category after eligible credit support. |
6 | Asset Concentration Risk Charge Net Exposure Amount | Whole dollars | Report the asset concentration risk charge net exposure amount. |
7 | Asset Concentration Risk Charge Limit Amount | Whole dollars | Report the asset concentration risk charge limit amount. |
8 | Adjustment For Cumulative Exposures Amount | Whole dollars | Report the adjustment for cumulative exposures amount. This applies to reinsurance exposures only. |
Table 3: Asset Concentration Risk Charge - Non-Reinsurance Exposures
Reporting threshold
This section is to be completed for each exposure to a group of related counterparties that will trigger an Asset Concentration Risk Charge limit amount as specified in HPS 117.
Units of measurement
Report values in whole Australian dollars.
| Name | Valid values | Description |
1 | Private Health Insurer Fund Type | · Health benefits fund · General fund | Report the private health insurer fund type. |
2 | Private Health Insurer Fund Name | Free text | Report the name of the private health insurer fund. This is in the event an insurer has multiple health benefits funds. In the event an insurer has only one health benefits fund, its name should be the same as the insurer. For the general fund, report the same name as the insurer. |
3 | Counterparty Group Name | Free text | Report the counterparty group name. |
4 | Eligible Credit Support Applied Indicator | · Yes · No | Report the eligible credit support applied indicator. |
5 | Asset Exposure Category After Eligible Credit Support Type | · Related party (APRA-regulated group) · Unrelated party (APRA-regulated group) · Other | Report the asset exposure category after eligible credit support. |
6 | Asset Concentration Risk Charge Net Exposure Amount | Whole dollars | Report the asset concentration risk charge net exposure amount. |
7 | Asset Concentration Risk Charge Long Term Net Exposure Amount | Whole dollars | Report the asset concentration risk charge long term net exposure amount. |
8 | Asset Concentration Risk Charge Limit Amount | Whole dollars | Report the asset concentration risk charge limit amount. |
9 | Asset Concentration Risk Charge Long Term Limit Amount | Whole dollars | Report the asset concentration risk charge long term limit amount. This applies to non-reinsurance exposures only. |