Financial Sector (Collection of Data) (reporting standard) determination No. 3 of 2021

Reporting Standard GRS 800.3 Facility Business Data: Public and Product Liability and Professional Indemnity Insurance

Financial Sector (Collection of Data) Act 2001

I, Alison Bliss, 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. 18 of 2016, including Reporting Standard GRS 800.3 Facility Business Data: Public and Product Liability and Professional Indemnity Insurance made under that Determination; and

(b)   DETERMINE Reporting Standard GRS 800.3 Facility Business Data: Public and Product Liability and Professional Indemnity Insurance, 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, and the revoked reporting standard shall cease to apply, on 31 December 2021.

This instrument commences on 31 December 2021.

Dated: 23 March 2021

[Signed]

Alison Bliss

General Manager

Data Analytics and Insights Division

Interpretation

In this Determination:

APRA means the Australian Prudential Regulation Authority.

financial sector entity has the meaning given in section 5 of the Act.

Schedule

Reporting Standard GRS 800.3 Facility Business Data: Public and Product Liability and Professional Indemnity Insurance comprises the document commencing on the following page.

Reporting Standard GRS 800.3

Facility Business Data: Public and Product Liability and Professional Indemnity Insurance

Authority

1. This Reporting Standard is made under section 13 of the Financial Sector (Collection of Data) Act 2001.

Purpose

2.             Information collected by Reporting Form GRF 800.3 Facility Business Data: Public and Product Liability and Professional Indemnity Insurance (GRF 800.3) is used by APRA for the purpose of prudential supervision and publication, including publication in the National Claims and Policies Database (NCPD).

Application

3.             This Reporting Standard applies to insurers.

Commencement

4.             This Reporting Standard applies for reporting periods ending on or after 31 December 2021.

Information required

5.             An insurer must provide APRA with the information required by GRF 800.3 in respect of each reporting period and each reportable facility business in respect of which the insurer is on risk during the reporting period.

Reporting periods and due dates  

6.             Subject to paragraph 7 of this Reporting Standard, an insurer to which this Reporting Standard applies must provide the information required by this Reporting Standard in respect of each calendar half-year (i.e. the periods ending 30 June and 31 December each year).

7.             APRA may, by notice in writing, change the reporting periods, or specify reporting periods, for a particular insurer to require it to provide the information required by this Reporting Standard more frequently, or less frequently, or in respect of reporting periods based upon the insurer’s own accounting financial year, having regard to:

(a)          the particular circumstances of the insurer; and

(b)          the extent to which the information is required for the purposes of the prudential supervision of the insurer.  

8.             The information required by this Reporting Standard must be provided to APRA:

(a)          in the case of half-yearly information, by no later than four months after the end of the reporting period; or

(b)          in the case of information provided in accordance with paragraph 7, within the time specified by notice in writing, 

or such later time as APRA may determine in writing.  APRA may determine a later time in writing in relation to all insurers, or a class of insurers, or one or more insurers named in the determination.

Method of submission

9.             The information required by this Reporting Standard must be rendered in comma separated values (CSV) format in accordance with the instructions in GRF 800.3, and must be provided electronically through the web site www.ncpd.apra.gov.au, by logging on using the relevant customer identification number and password provided by Fujitsu Australia (as agent of APRA), and following the instructions on that web site.

10.         Despite paragraph 9, APRA may, in writing, make either or both of the following determinations:

(a)          a determination that information required by this Reporting Standard must be provided in accordance with alternative information technology requirements specified by APRA in the determination; and

(b)          a determination that information required by this Reporting Standard must be provided to APRA or an agent of APRA at an alternative address in accordance with requirements specified in the determination.

Quality control

11.         The information provided by an insurer under this Reporting Standard must be the product of processes and controls developed by the insurer for the internal review and authorisation of the 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 provided to APRA is in place. 

Authorisation

12.         Fujitsu Australia (as agent of APRA) will provide each insurer with a customer identification number.  If an insurer proposes to submit information required by this Reporting Standard using the method in paragraph 9 (i.e. via the website), the insurer must apply for a password by viewing the web page referred to in paragraph 9, quoting the insurer’s customer identification number and following the instructions for applying for a password on that page.  Fujitsu Australia will advise the insurer’s Chief Financial Officer of the password for the insurer.  When information is provided using the method in paragraph 9, the insurer will be required to quote its customer identification number and password.  Upon successful validation of the customer identification and password a secure session between the insurer and Fujitsu Australia will be created and information will be encrypted before transmission.

13.         Despite paragraph 12, or where APRA has made a determination under subparagraphs 10(a) or (b) specifying an alternate method of submission, APRA may also determine in writing that: 

(a)          a specified person (who need not be the Principal Executive Officer or Chief Financial Officer of the insurer); 

(b)          a person holding a specified position (which need not be the position of Principal Executive Officer or Chief Financial Officer of the insurer); or 

(c)          a person authorised by the insurer to use the insurer’s customer identification number and password, 

may, or must, authorise (in a manner specified) information provided by the insurer under this Reporting Standard.

Minor alterations to forms and instructions

14.         APRA may: 

(a)          make minor variations to GRF 800.3 (either generally, or in relation to a class of insurers, or in relation to a particular insurer) to correct technical, programming or logical errors, inconsistencies or anomalies; 

(b)          vary, omit or substitute (either generally, or in relation to a class of insurers, or in relation to a particular insurer) an occupation code or description in Appendix A to GRF 800.3, if APRA forms the view that the existing code or description is inappropriate having regard to the circumstances or business of each relevant insurer and any other relevant considerations; or

(c)          vary, omit or substitute (either generally, or in relation to a class of insurers, or in relation to a particular insurer) a specification in a Table in GRF 800.3, if APRA forms the view that the specification is inappropriate having regard to the circumstances or business of each relevant insurer and any other relevant considerations.

15.         If APRA makes such a variation it must notify affected insurers in writing.

Interpretation

16.         In this Reporting Standard:

agent of APRA means a person appointed under s 47 of the Australian Prudential Regulation Authority Act 1998 to receive data on behalf of APRA.

APRA means the Australian Prudential Regulation Authority established under the Australian Prudential Regulation Authority Act 1998.

Chief Financial Officer means the person having the function of chief financial officer of the insurer, by whatever name called, and whether or not he or she is a member of the governing board of the entity, and if there is no such person means a person who performs similar functions to those commonly performed by a chief financial officer.  

facility business means business that is closed by bordereau and for which the insurer does not receive individual policy or claims data from the facility manager, and includes business undertaken through an underwriting pool or joint venture arrangement.

Fujitsu Australia means Fujitsu Australia Limited ABN 19 001 011 427.

general insurer has the same meaning as in the Insurance Act 1973.  

insurer means general insurer.

Principal Executive Officer means the principal executive officer of the insurer for the time being, by whatever name called, and whether or not he or she is a member of the governing board of the entity.

product liability insurance includes policies that provide for compensation for loss and or injury caused by, or as a result of, the use of goods.

professional indemnity insurance includes:

(a)          insurance that provides cover for a professional for actions taken against that professional in tort, contract or under statute law in respect of advice or services provided as part of their professional practice, including cover in respect of damages and legal expenses;

(b)          directors’ and officers’ liability insurance and legal expense insurance; and

(c)          medical indemnity insurance.

public liability insurance includes:

(a)          insurance covering legal liability to the public in respect of bodily injury or property damage arising out of the operation of the insured’s business; and

(b)          insurance in respect of environmental clean-up costs resulting from pollution where not covered by Fire and Industrial Special Risk policies.

reportable facility business means facility business underwritten by an insurer on or after 1 January 2003 under which the risk, or a risk, assumed by the insurer relates to product liability, professional indemnity or public liability insurance, not being a risk that relates to:

(a)          reinsurance or retrocession cover;

(b)          marine insurance;

(c)          domestic householder’s or owner’s insurance, or tenant’s liability insurance, sold in conjunction with a building or contents policy; or

(d)          an event that could neither occur in Australia nor in relation to an insured resident of Australia.

17.         For the purposes of paragraph 8, where information must be provided no later than a particular date, an insurer is required to ensure that the information is received by the person to whom it must be provided (whether APRA or an agent of APRA) no later than that date.

18.         Unless the contrary intention appears, any reference to an Act, Regulation, Prudential Standard, Reporting Standard, Australian Accounting Standard or Auditing Standard is a reference to the instrument as in force or existing from time to time.

19.         Where this Reporting Standard provides for APRA to exercise a power or discretion, this power or discretion is to be exercised in writing.

Reporting Form GRF 800.3

Facility Business Data: Public and Product Liability and Professional Indemnity Insurance

Instruction Guide  

These instructions have been prepared for the purpose of defining the facility business information required to be submitted by insurers in respect of public and product liability and professional indemnity insurance.  This information will contribute to a National Claims and Policy Database (NCPD) in respect of these classes of insurance.  The intention is to create a database that holds information in respect of claims and policies for public and product liability and professional indemnity on a national basis.  State and Territory Government insurers will also contribute to the NCPD where possible.[1]    

Details of requirements in relation to reporting periods, method of submission and authorisation are set out in the Reporting Standard.  The data submitted by each insurer will be validated by APRA at each reporting period. The data validation to be performed is outlined in Appendix B.

Record Layouts and Field Specifications 

Facility Business Data Specifications

Date must be DDMMYYYY, no delimiter.

* Fields so indicated, as a combination, must be unique for each reporting period.

Facility Business Record Data Field Definitions 

1. Insurer Code  

A unique code assigned by APRA to each contributor

2. Month of end of Reporting periods  

The data for each submission will relate to a six month period.  Enter as DDMMYYYY the last day of the period being reported, e.g. insert 30062004 for data relating to the six months ending 30 June 2004. 

3. Facility Identifier   

A unique identifier for each facility where the insurer has received in excess of $100,000 in premium or made gross payments in excess of $100,000, for each respective six month period. Facilities where the insurer has received less than $100,000 in premium or made gross payments of less than $100,000 in the six month period are to be included as one record with the identifier “Other”. If a facility was previously reported separately, but now falls below the $100,000 threshold, it can now be reported as part of the “Other” data. 

4. Industry/Occupation Code  

For Public and Products Liability, use the principal classification of the business from the latest edition of Catalogue Number 1292.0 Australian and New Zealand Standard Industrial Classification (ANZSIC), published by the Australian Bureau of Statistics and available on their web site.  Provide data at the 4-digit ANZSIC code level. Any reports or publications will be aggregated to the 2 digit level ANZSIC.

Residential strata owners’ liability is collected under ANZSIC classification 7711 - Residential Property Operators, whereas for Commercial Property Operators it is either 7712 or the occupation code that is most closely aligned with the tenancy of the strata.

For Professional Risks, use the codes provided in Attachment B.

Occupation code “OMULTI” and code “0000” (for ANZIIC codes) should only be used for Facility Business data where a facility covers multiple industry or occupation codes, no single code can be regarded as the principal industry or occupation code and hence it is not possible or appropriate to use one of the more specific codes.

5. Class of Business

•                 PL = Public & Product

•                 PI = Professional Risk 

6. Runoff Indicator

•                 Y = Yes

•                 N = No

7. Insurer’s Percentage of Facility  

Your proportion of the facility, to 2 decimal places (e.g. 66.66 for 66.66%). 

Blank on “Other” facilities records.

8. Number of Policies   

The total numbers of policies covered by this facility, if available or else provide a “blank”.

9. Premium Received for Reporting periods

(Your share of) the gross premium from this facility during the half year. Exclude all statutory charges (FSL, GST & SD) but include others costs (commissions).

10. Number of Claims  

The total numbers of claims covered by this facility for which payments have been reported in item 9 below, if available or else provide a “blank”. 

11. Gross Payments Made in Reporting periods   

(Your share of) of payments made for this facility since the last reporting period, net of GST in whole dollars, no decimal point.  Includes payments made to claimant and to third-party service providers (medical, legal, investigation) that are attributed to the claim.

Appendix A: APRA Occupation Codes for Professional Indemnity

* Only available for facility business.

Appendix B: Data Validation

As well as unit record validation, overall reasonability checks will be carried out on each insurer’s data.

With each half-yearly data submission

Various comparisons between the current reporting period and the previous period will be carried out in order to monitor data reasonability and consistency. These may include:

•                 Change in the aggregate Gross Earned Premium, split by two digit ANZSIC code or single character occupation code;

•                 Changes in the total numbers of policies and claims;

•                 Counts of claims by various measures; causes of loss, severity or litigation status; and

•                 Changes in the average and total claims paid.

As well, various reasonability checks will be carried out within each period submission, including;

•                 Overuse of the various ‘Other’ categories and codes; and

•                 Comparison of the various premium fields against each other.

Other reasonability checks may be carried out on an ad hoc basis.

[1] State and Territory insurers are not required to comply with Reporting Standard GRS 800.3, however will provide information in accordance with this Reporting Form GRF 800.3 where possible.