Financial Sector (Collection of Data) (reporting standard) determination No. 73 of 2023
Reporting Standard GRS 116.0 Insurance 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:
(a) revoke Financial Sector (Collection of Data) (reporting standard) determination No. 11 of 2023, including Reporting Standard GRS 116.0 Insurance Concentration Risk Charge made under that Determination; and
(b) determine Reporting Standard GRS 116.0 Insurance 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 that reporting standard.
Under section 15 of the Act, I declare that Reporting Standard GRS 116.0 Insurance Concentration Risk Charge shall begin to apply to those financial sector entities, and the revoked reporting standard shall cease to apply, on the day Reporting Standard GRS 116.0 Insurance Concentration Risk Charge is registered on the Federal Register of Legislation.
This instrument commences upon registration on the Federal Register of Legislation.
Dated: 26 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 GRS 116.0 Insurance Concentration Risk Charge comprises the document commencing on the following page.
Reporting Standard GRS 116.0
Insurance Concentration Risk Charge
Objective of this Reporting Standard
This Reporting Standard sets out the requirements for providing information to APRA about a general insurer’s Insurance Concentration Risk Charge.
It includes associated specific instructions and must be read in conjunction with Reporting Standard GRS 001 Reporting Requirements (GRS 001), including the general instruction guide, and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge (GPS 116).
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 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 July 2023.
Information required
4. An 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, 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. 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) in the case of quarterly information, within 20 business days after the end of the reporting period to which the information relates;
(b) in the case of annual information, within three months after the end of the reporting period to which the information relates; or
(c) 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).
9. APRA may, in writing, grant an insurer an extension of a due date in paragraph 8, 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, an insurer is nonetheless required to submit the information required no later than the due date.
Quality control
10. 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 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.
11. 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
12. When an officer, or agent, of an insurer provides the information required by this Reporting Standard using an electronic format the officer, or agent, must digitally sign the relevant information using a digital certificate acceptable to APRA.
13. If the information required by this Reporting Standard is provided by an agent who submits the information on the insurer’s behalf, the insurer must:
(a) obtain from the agent a copy of the completed information provided to APRA; and
(b) retain the completed copy.
14. 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
15. APRA may, by written notice to the insurer, vary the reporting requirements of this Reporting Standard in relation to that insurer.
Transition
16. 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 1 July 2023; 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
17. In this Reporting Standard:
(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) the following definitions are applicable:
Appointed Auditor means an auditor appointed under section 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 this Reporting Standard, 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.
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.
Reporting Standard GRS 116.0
Insurance Concentration Risk Charge
General instructions
Tables described in this reporting standard list each of the data fields required to be reported. The data fields are listed sequentially in the column order that they will appear in the reported data set. Constraints on the data that can be reported for each field have also been provided.
Definitions
Terms in bold italics are defined in this Definitions section of these instructions.
| Basis for determination of H3 requirement | The insurer must select ‘gross’ if it has determined that the H3 requirement would be greater if it is based on the gross loss arising from the occurrence of a single event, when compared to the net loss arising from the occurrence of a single event. The insurer must select ‘net’ if it has determined that the H3 requirement would be greater if it is based on the net loss arising from the occurrence of a single event, when compared to the gross loss arising from the occurrence of a single event. |
| Basis for determination of H4 requirement | The insurer must select ‘gross’ if it has determined that the H4 requirement would be greater if it is based on the gross loss arising from the occurrence of a single event, when compared to the net loss arising from the occurrence of a single event. The insurer must select ‘net’ if it has determined that the H4 requirement would be greater if it is based on the net loss arising from the occurrence of a single event, when compared to the gross loss arising from the occurrence of a single event. |
| Basis for determination of NP VR | The insurer must enter ‘gross’ if it has determined that the NP VR would be greater, if it is based on the gross loss arising from the occurrence of a single event, than the net loss arising from the occurrence of a single event. The insurer must enter ‘net’ if it has determined that the NP VR would be greater, if it is based on the net loss arising from the occurrence of a single event, than the gross loss arising from the occurrence of a single event. |
C
| Commencement date of catastrophe reinsurance program | The insurer is required to report the commencement date of catastrophe reinsurance program. Where the insurer has multiple inception dates for its catastrophe reinsurance program it must consult with APRA to determine the relevant commencement date. |
E
| End date of catastrophe reinsurance program | The insurer is required to report the end date of catastrophe reinsurance program. Where the insurer has multiple inception dates for its catastrophe reinsurance program it must consult with APRA to determine the relevant end date. |
H
| H3 aggregate offset | H3 aggregate offset is the amount of potential reinsurance recoverables from aggregate reinsurance cover. The insurer must not allow for any reinstatements of aggregate reinsurance cover unless these have been contractually agreed with the reinsurer(s). If reinstatements are included, the cost of reinstatement must be netted from the offset. The insurer must agree with APRA a methodology for the determination of this adjustment. This methodology may allow for any portion of paid and outstanding claims and premiums liabilities (PL) that contribute to the insurer’s retained losses for the purposes of the retention on any aggregate reinsurance cover, provided it does not result in a double-count between this offset and the PL offset. The total H3 aggregate offset is calculated as the sum of: · first event; · second event; and · third event. |
| H3 loss per event | The H3 loss per event is calculated for each H3 event as the sum of: · single event loss from H3 event; · H3 reinstatement cost; less: · H3 reinsurance recoverables; · H3 aggregate offset; and · H3 reinstatement premiums. |
| H3 reinstatement cost | The insurer is not required to determine a H3 reinstatement cost after the third event. H3 reinstatement cost is the cost (if any) of reinstating catastrophe reinsurance cover after the occurrence of the first two H3 losses. The cost (if any) must reflect the cost of reinstating reinsurance cover up to the size of the third event. In determining this cost, if the insurer does not have contractually agreed rates for the reinsurance cover, the insurer must estimate the cost based on the reinsurance market conditions that would prevail after the occurrence of the events. The amount must not be less than the full original cost of the cover, with no deduction for the expiry of time since the inception of the reinsurance arrangements unless the insurer is able to demonstrate to APRA that the amount materially overstates the cost that would prevail in the market after the occurrence of the events. The total H3 reinstatement cost is calculated as the sum of: · first event; and · second event. |
| H3 reinstatement premiums | H3 reinstatement premiums are applicable to insurers that write reinsurance and may receive inwards reinstatement premiums from cedants as a result of the events that give rise to three H3 losses. H3 reinstatement premiums must only be included in NP HR if the reinsurance contract specifically stipulates that offsetting with the cedant will occur at the time of the payment of the reinsurance claim. The total H3 reinstatement premiums is calculated as the sum of: · first event; · second event; and · third event. |
| H3 reinsurance recoverables | H3 reinsurance recoverables are the level of potential reinsurance recoverables should there be the occurrence of three H3 losses over the catastrophe reinsurance program treaty year. H3 reinsurance recoverables must not include any amounts due from aggregate reinsurance cover. The total H3 reinsurance recoverables is calculated as the sum of: · first event; · second event; and · third event. |
| H3 requirement | The H3 requirement is calculated as the total over the three events for H3 loss per event. |
| H4 aggregate offset | H4 aggregate offset is the amount of potential reinsurance recoverables from aggregate reinsurance cover. The insurer must not allow for any reinstatements of aggregate reinsurance cover unless these have been contractually agreed with the reinsurer(s). If reinstatements are included, the cost of reinstatement must be netted from the offset. The insurer must agree with APRA a methodology for the determination of this adjustment. This methodology may allow for any portion of paid and outstanding claims and PL that contribute to the insurer’s retained losses for the purposes of the retention on any aggregate reinsurance cover, provided it does not result in a double-count between this offset and the PL offset. The total H4 aggregate offset is calculated as the sum of: · first event; · second event; · third event; and · fourth event. |
| H4 loss per event | The H4 loss per event is calculated for each H4 event as the sum of: · single event loss from H4 event; and · H4 reinstatement cost; less: · H4 reinsurance recoverables; · H4 aggregate offset; and · H4 reinstatement premiums. |
| H4 reinstatement cost | H4 reinstatement cost is the cost (if any) of reinstating catastrophe reinsurance cover after the occurrence of the first three H4 losses. The cost (if any) must reflect the cost of reinstating reinsurance cover up to the size of the fourth event. In determining this cost, if the insurer does not have contractually agreed rates for the reinsurance cover, the insurer must estimate the cost based on the reinsurance market conditions that would prevail after the occurrence of the events. The amount must not be less than the full original cost of the cover, with no deduction for the expiry of time since the inception of the reinsurance arrangements unless the insurer is able to demonstrate to APRA that the amount materially overstates the cost that would prevail in the market after the occurrence of the events. The total H4 reinstatement cost is calculated as the sum of: · first event; · second event; and · third event. |
| H4 reinstatement premiums | H4 reinstatement premiums are applicable to insurers that write reinsurance and may receive inwards reinstatement premiums from cedants as a result of the events that give rise to three H4 losses. H4 reinstatement premiums must only be included in NP HR if the reinsurance contract specifically stipulates that offsetting with the cedant will occur at the time of the payment of the reinsurance claim. The total H4 reinstatement premiums is calculated as the sum of: · first event; · second event; · third event; and · fourth event. |
| H4 reinsurance recoverables | H4 reinsurance recoverables are the level of potential reinsurance recoverables should there be the occurrence of four H4 losses over the catastrophe reinsurance program treaty year. H4 reinsurance recoverables must not include any amounts due from aggregate reinsurance cover. The total H4 reinsurance recoverables is calculated as the sum of: · first event; · second event; · third event; and · fourth event. |
| H4 requirement | The H4 requirement is calculated as the total over the four events for H4 loss per event. |
L
| LMI Concentration Risk Charge | The LMI Concentration Risk Charge represents the net loss from the application of a prescribed three-year economic downturn scenario to any lenders mortgage insurance business. The determination of the LMI Concentration Risk Charge is based on the formulae and requirements set out in GPS 116. |
N
| Natural perils horizontal requirement (NP HR) | The natural perils horizontal requirement (NP HR) is calculated as the greater of: · H3 requirement; or · H4 requirement less: · PL offset. |
| Natural perils vertical requirement (NP VR) | The natural perils vertical requirement (NP VR) is calculated as the greater of: · NP PML less NP reinsurance recoverables; or · net whole-of-portfolio loss; less: · NP reinstatement premiums plus: · NP reinstatement cost less: · other adjustments. |
| Net whole-of-portfolio loss | Net whole-of-portfolio loss is the net loss arising from the occurrence of a single event where that net loss is not less than the whole-of-portfolio annual net loss with a 0.5 per cent probability of occurrence. |
| NP PML | NP PML is the gross loss arising from the occurrence of a single event, where that loss is not less than the whole-of-portfolio annual loss with a 0.5 per cent probability of occurrence. |
| NP reinstatement cost | NP reinstatement cost is the cost (if any) of reinstating all catastrophe reinsurance cover relating to the reinsurance recoverables determined. In determining this cost, if the insurer does not have contractually agreed rates for the reinsurance cover, the insurer must estimate the cost based on current reinsurance market conditions. The amount must not be less than the full original cost of the cover with no deduction for the expiry of time since the inception of the reinsurance arrangements unless the insurer is able to demonstrate to APRA that the amount materially overstates the cost that would prevail. |
| NP reinstatement premiums | NP reinstatement premiums are applicable to insurers that write reinsurance and may receive inwards reinstatement premiums from cedants as a result of the event that gives rise to its NP PML, or the net whole-of-portfolio loss. NP reinstatement premiums must only be included in NP VR if the reinsurance contract specifically stipulates that offsetting with the cedant will occur at the time of the payment of the reinsurance claim. |
| NP reinsurance recoverables | NP reinsurance recoverables is the level of potential reinsurance recoverables should there be the occurrence of the event that gives rise to NP PML. This amount must not include any amounts due from aggregate reinsurance cover. |
O
| OA PML | OA PML is the gross loss arising from the occurrence of a single event, such that the size of the loss has 0.5 per cent probability of occurrence. An insurer with exposures to accumulations of losses arising from a common dependent source or non-natural perils must determine OA PML. |
| OA reinstatement cost | OA reinstatement cost is the cost (if any) of reinstating all catastrophe reinsurance cover relating to OA reinsurance recoverables. In determining this cost, if the insurer does not have contractually agreed rates for the reinsurance cover, the insurer must estimate the cost based on the current reinsurance market conditions. The amount must not be less than the full original cost of the cover with no deduction for the expiry of time since the inception of the reinsurance arrangements unless the insurer is able to demonstrate to APRA that the amount materially overstates the cost that would prevail. |
| OA reinsurance recoverables | OA reinsurance recoverables is the level of potential reinsurance recoverables should there be occurrence of OA PML. This amount may include any amounts from aggregate reinsurance cover if the cover has reached its attachment point, or will as a result of OA PML. The reinsurance recoverables can then be applied until the cover has been exhausted by claims by the insurer or the date that the aggregate reinsurance treaty expires, whichever occurs first. |
| Other accumulations vertical requirement (OA VR) | The other accumulations vertical requirement (OA VR) is calculated as the sum of: · OA PML; and · OA reinstatement cost less: · PL adjustment to OA PML; and · OA reinsurance recoverables. |
| Other adjustments | Other adjustments include potential reinsurance recoverables from aggregate reinsurance cover. Aggregate reinsurance cover is eligible to be considered for inclusion in the NP VR once the aggregate reinsurance cover has reached its attachment point, or will as a result of the occurrence of NP PML, or net whole-of-portfolio loss, as appropriate. The reinsurance recoverables from aggregate reinsurance cover must then be applied up until the cover has been exhausted by claims by the insurer or the date that the aggregate reinsurance treaty expires, whichever occurs first. |
P
| PL adjustment to OA PML | The insurer may reduce the OA PML for any losses included in the other accumulation scenario that is already specifically allowed for in the premiums liabilities of the insurer. |
| PL offset | PL offset is the portion of the premiums liability provision which relates to catastrophic losses (those that give rise to a relatively significant number of claims and occur no more frequently than every three months), as determined by the Appointed Actuary. |
S
| Single event loss from H3 event | The single event loss from H3 event is the gross or net loss from the occurrence of a single event, where that loss is not less than the whole-of-portfolio annual (gross/net) loss with a 10 per cent probability of occurrence. |
| Single event loss from H4 event | The single event loss from H4 event is the gross or net loss from the occurrence of a single event, where that loss is not less than the whole-of-portfolio annual loss with a 16.7 per cent probability of occurrence. |
Table 1: Insurance Concentration Risk Charge
Insurance concentration risk charge (ICRC)
The insurer is not required to report each component of the ICRC where the amount determined for one or more of the components is always expected to be materially lower than the amount determined for one or more of the other components.
Units of measurement
Report values in whole Australian dollars (no decimal places).
1. Natural perils vertical requirement (NP VR)
| Item 1 | Natural perils vertical requirement (NP VR) is a derived item and is calculated as the greater of: · item 1.2 less item 1.3; or · item 1.4; less: · item 1.5 plus: · item 1.6 less: · item 1.7 |
| Item 1.1 | Report the basis for determination of NP VR value. The valid values are: · gross; or · net |
| Item 1.2 | Report the NP PML amount. The insurer must only report this item if the insurer has entered ‘gross’ in item 1.1. |
| Item 1.3 | Report the NP reinsurance recoverables amount. The insurer must only report this item if the insurer has entered ‘gross’ in item 1.1. |
| Item 1.4 | Report the net whole-of-portfolio loss amount. The insurer must only report this item if the insurer has entered ‘net’ in item 1.1. |
| Item 1.5 | Report the NP reinstatement premiums amount. |
| Item 1.6 | Report the NP reinstatement cost amount. |
| Item 1.7 | Report the other adjustments amount. |
2. Natural perils horizontal requirement (NP HR)
| Item 2 | Natural perils horizontal requirement (NP HR) is a derived item and is calculated as the greater of · item 2.3; or · item 2.4 less: · item 2.5. |
| Item 2.1 | Report the commencement date of catastrophe reinsurance program amount. |
| Item 2.2 | Report the end date of catastrophe reinsurance program amount. |
The following items relate to the H3 requirement.
| Item 2.3 | H3 requirement is a derived item and is calculated as the total over the three events (across columns 1 to 3) for: · item 2.3.7 |
| Item 2.3.1 | Report the basis for determination of H3 requirement. The valid values are: · gross; or · net |
| Item 2.3.2 | Report the single event loss from H3 event amount. |
The following columns are to be reported for item 2.3.3 to item 2.3.7.
| Column 1 | Report the amount for the first event. |
| Column 2 | Report the amount for second event. |
| Column 3 | Report the amount for the third event. |
| Item 2.3.3 | Report the H3 reinsurance recoverables amount for each event. This item must only be reported if the insurer has selected ‘gross’ in item 2.3.1. The total H3 reinsurance recoverables is calculated as the sum across columns 1 to 3. |
| Item 2.3.4 | Report the H3 aggregate offset amount for each event. The total H3 aggregate offset is calculated as the sum across columns 1 to 3. |
| Item 2.3.5 | Report the H3 reinstatement premiums amount for each event. The total H3 reinstatement premiums is calculated as the sum across columns 1 to 3. |
| Item 2.3.6 | Report the H3 reinstatement cost amount after the first and second events. The insurer is not required to determine a H3 reinstatement cost after the third event. The total H3 reinstatement cost is calculated as the sum across columns 1 to 2. |
| Item 2.3.7 | H3 loss per event is a derived item and is calculated for each event as the sum of: · item 2.3.2; and · item 2.3.6. less: · item 2.3.3; · item 2.3.4; and · item 2.3.5. The total H3 loss per event is calculated as the sum across columns 1 to 3. |
H4 requirement
The following items relate to the H4 requirement.
| Item 2.4 | H4 requirement is a derived item and is calculated as the total over the four events (across columns 1 to 4) for: · item 2.4.7 |
| Item 2.4.1 | Report the basis for determination of H4 requirement. The valid values are: · gross; or · net |
| Item 2.4.2 | Report the single event loss from H4 event amount. |
The following columns are to be reported for item 2.4.3 to item 2.4.7.
| Column 1 | Report the amount for the first event. |
| Column 2 | Report the amount for second event. |
| Column 3 | Report the amount for the third event. |
| Column 4 | Report the amount for the fourth event. |
| Item 2.4.3 | Report the H4 reinsurance recoverables amount for each event. This item must only be reported if the insurer has selected ‘gross’ in item 2.4.1. The total H4 reinsurance recoverables is calculated as the sum across columns 1 to 4. |
| Item 2.4.4 | Report the H4 aggregate offset amount for each event. The total H4 aggregate offset is calculated as the sum across columns 1 to 4. |
| Item 2.4.5 | Report the H4 reinstatement premiums amount for each event. The total H4 reinstatement premiums is calculated as the sum across columns 1 to 4. |
| Item 2.4.6 | Report the H4 reinstatement cost amount after the first, second and third events. The insurer is not required to determine a H4 reinstatement cost after the fourth event. The total H4 reinstatement cost is calculated as the sum across columns 1 to 3. |
| Item 2.4.7 | H4 loss per event is a derived item and is calculated for columns 1 to 4 as the sum of: · item 2.4.2; and · item 2.4.6. less: · item 2.4.3; · item 2.4.4; and · item 2.4.5. The total H4 loss per event is calculated as the sum across columns 1 to 4. |
| Item 2.5 | Report the PL offset amount. |
3. Other accumulations vertical requirement (OA VR)
| Item 3 | Other accumulations vertical requirement (OA VR) is a derived item and is calculated as the sum of: · item 3.1; and · item 3.4 less: · item 3.2; and · item 3.3. |
| Item 3.1 | Report the OA PML amount. |
| Item 3.2 | Report the PL adjustment to OA PML amount. |
| Item 3.3 | Report the OA reinsurance recoverables amount. |
| Item 3.4 | Report the OA reinstatement cost amount. |
4. LMI concentration risk charge
| Item 4 | Report the LMI concentration risk charge amount. |