PET - Plain English Taxonomy

Attribute: R13563
Concept:
Label: Premiums Liabilities - Risk Margin
Concept Guidance:
This is the value, as at the relevant date, of the risk margin component of premiums liabilities, as determined in accordance with relevant prudential standards.  The risk margin must be assessed at the level specified by APRA for capital purposes; this may not be the same risk margin used for other purposes such as statutory accounts.Premiums liabilities relate to all future claim payments arising from future events post the valuation date that will be insured under the reporting entity's existing policies that have not yet expired. The value of the premiums liabilities must include an amount in respect of the expenses that the reporting entity expects to incur in administering and settling the relevant claims and allow for expected premium refunds.The value of premiums liabilities must not include any Government charges directly imposed on the insurer such as levies, duties and taxes. Also a deferred acquisition cost asset must not be reported.The risk margin is the component of the value of premiums liabilities that relates to the inherent uncertainty that outcomes will differ from the central estimate.The risk margin relates to the central estimate measured as the present value of the future expected payments, i.e. discounted for future investment income, determined in accordance with relevant prudential standards. The central estimate is intended to reflect the mean value in the range of possible values for the outcome (that is, the mean of the distribution of probabilistic outcomes), and the risk margin, when added to the central estimate, is intended to increase the likelihood that the premiums liabilities will be sufficient to the level required in relevant prudential standards. 
Dimensions
Dimension Member Description
(Prudential)
This dimension represents the basis used for the reported information.
This information relates to the prudential basis of preparation.
(DirectBusiness)
This dimension is used to categorise information according to business activity.
Report where the class of business relates to direct insurance contracts.Insurance contracts are classified as 'direct' when the reporting party has a contract directly with a policyholder that is not an insurer or reinsurer. Policyholder means a party that has a right to compensation under an insurance contract if an insured event occurs.
This dimension categorises reported data according to predefined product groups.
(Net)
This dimension identifies the valuation scenario, in relation to recoveries, under which the reported value was calculated.
The information reported is in relation to the value of the asset or liability after allowing for the relevant adjustments.
(Diversified)
This dimension relates to the risk margin as determined by the relevant prudential standards.
The information reported is in relation to the risk margin applied to the class of business after allowance for diversification across the whole insurance portfolio.