This Prudential Standard requires a general insurer or Level 2 insurance group to maintain adequate capital against the risks associated with insurance concentration in its activities. This Prudential Standard sets out the method for calculating the Insurance Concentration Risk Charge. This charge is one of the components of the Standard Method for calculating the prescribed capital amount for general insurers and Level 2 insurance groups.

Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge (GPS 116) sets out APRA’s requirements in relation to insurance concentration risk. This prudential practice guide (PPG) assists general insurers and Level 2 insurance groups in complying with those requirements and, more generally, to outline prudent practices in relation to insurance concentration risk.   |  File type: PDF  |  File size: 167.08 KB

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).

Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a general insurer’s Insurance Concentration Risk Charge. It includes Form GRF 116.0 Insurance Concentration Risk Charge and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.

This Reporting Standard sets out the requirements for providing information to APRA about the calculation of the Level 2 insurance group’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).

This Reporting Standard sets out the requirements for the provision of information to APRA relating to the calculation of the Level 2 insurance group’s insurance concentration risk charge. It includes Form GRF 116.0_G Insurance Concentration Risk Charge (G) and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.

Level 1: This Reporting Standard sets out the requirements for the provision of information to APRA relating to a lenders mortgage insurer’s Probable Maximum Loss and Insurance Concentration Risk Charge. It includes Form GRF 116.1 Probable Maximum Loss for LMIs – Standard Loans, Form GRF 116.2 Probable Maximum Loss for LMIs – Non-Standard Loans, Form GRF 116.3 Probable Maximum Loss for LMIs – Commercial Loans, Form GRF 116.4 LMI Concentration Risk Charge and Form GRF 116.5 Probable Maximum Loss for LMIs – Additional Information and associated specific instructions and must be read in conjunction with the general instruction guide and Prudential Standard GPS 116 Capital Adequacy: Insurance Concentration Risk Charge.