Label: | Liabilities Insurance Outstanding Claims Provision Net Risk Margin Amount |
TREF ID: | DE8522 |
Data Type: | xbrli:monetaryItemType |
Period Type: | instant |
Balance Type: | credit |
Business Description & Guidance: |
This is the value, as at the relevant date, of the risk margin component of outstanding claims liabilities (OCL), net of any recoveries, determined in accordance with relevant prudential standards. This includes the APRA risk margin (75% probability of sufficiency including diversification benefits) included in the net OCL. OCL relates to all claims incurred prior to the valuation date, whether or not they have been reported to the insurer. The value of the OCL must include an amount in respect of the expenses that the insurer expects to incur in settling these claims. The value of OCL must not include any Government charges directly imposed on the insurer such as levies, duties and taxes. The risk margin is the component of the value of OCL 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 net of any recoveries, 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 OCL will be sufficient to the level required in relevant prudential standards. |
Usage
Form | Labels | |
Label:
Guidance:
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OCP Net of Reinsurance Recoveries & Non-Reinsurance Recoveries: Risk Margin |
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Label:
Guidance:
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OCP Net of Reinsurance Recoveries & Non-Reinsurance Recoveries: Risk Margin |
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Label:
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APRA Risk Margin on Net Outstanding Claims |