Financial Sector (Collection of Data) (reporting standard) determination No. 40 of 2023

Reporting Standard SRS 251.0 Insurance

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. 14 of 2021, including Reporting Standard SRS 251.0 Insurance made under that Determination; and

(b)          determine Reporting Standard SRS 251.0 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 the day it is registered on the Federal Register of Legislation.

This instrument commences upon registration on the Federal Register of Legislation.

Dated: 23 May 2023

Michael Murphy

Acting Chief Data Officer

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 SRS 251.0 Insurance comprises the document commencing on the following page.

Reporting Standard SRS 251.0

Insurance

Authority

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

Purpose

2.             Information collected under this Reporting Standard is used by APRA for the purposes of prudential supervision and publication. It may also be used by the Australian Securities and Investments Commission.

Application

3.             This Reporting Standard applies to each registrable superannuation entity (RSE) licensee (RSE licensee) in respect of each RSE and defined benefit RSE within its business operations[1].

Commencement

4.             This Reporting Standard commences on the day it is registered on the Federal Register of Legislation.

Reporting period

5.             Reporting periods under this Reporting Standard are each year ending 30 June.

Information required

6.             RSE licensees must provide information required by this Reporting Standard under SRF 251.0, SRF 251.1, SRF 251.2 and SRF 251.3 for reporting periods ending on or after 30 June 2023.

7.             An RSE licensee to which this Reporting Standard applies must provide the information required by paragraph 6, within 3 months after the end of the relevant reporting period.

Quarterly attestation required

8.             An RSE licensee must provide APRA an attestation that the information it last provided APRA under this Reporting Standard on SRF 251.3 was still accurate as at the end of every calendar quarter (i.e. the periods ending 30 September, 31 December, 31 March and 30 June each year) or that the RSE Licensee has, or will be, providing updated information to APRA in accordance with paragraph 10.

9.             An RSE licensee to which this Reporting Standard applies must provide information required under paragraph 8, within 28 calendar days after the end of each calendar quarter.

Ad-hoc information required

10.         Where an RSE licensee makes a change to information reported on SRF 251.3 under this Reporting Standard, on or after 1 July 2023, the RSE licensee must provide updated information on SRF 251.3 required by this Reporting Standard within 28 calendar days after the end of the calendar quarter in which the change occurred for the periods ending 30 September, 31 December and 31 March.

Notices

11.         If, having regard to the particular circumstances of an RSE and defined benefit RSE, APRA considers it necessary or desirable to obtain information more or less frequently than as provided by paragraph 5, APRA may, by notice in writing, change the reporting periods for the particular RSE or defined benefit RSE.

12.         Where APRA has changed the reporting periods under paragraph 11, the RSE licensee must provide the relevant information within the time specified by the notice in writing.

13.         APRA may grant, in writing, an RSE licensee an extension of a due date with respect to one or more RSEs or defined benefit RSEs within its business operations, in which case the new due date for the provision of the information will be the due date on the specified notice of extension.

Note: For the avoidance of doubt, if the due date falls on a day other than a usual business day, an RSE licensee is nonetheless required to submit the information required no later than the due date.

Form and method of submission

14.         The information required by this Reporting Standard must be given to APRA in electronic format using an electronic method available on APRA’s website or by a method notified by APRA prior to submission.

 Quality control

15.         The information provided by an RSE licensee under this Reporting Standard must be the product of systems, procedures and internal controls that have been reviewed and tested by the RSE auditor of the RSE, or defined benefit RSE to which the information relates[2]. This will require the RSE auditor to review and test the RSE licensee’s systems, procedures and internal controls designed to enable the RSE licensee to report reliable information to APRA. This review and testing must be done on:

(a)          an annual basis or more frequently if necessary to enable the RSE auditor to form an opinion on the reliability and accuracy of information; 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 SPS 310 Audit and Related Matters (SPS 310).

16.         All information provided by an RSE licensee under this Reporting Standard must be subject to systems, processes and controls developed by the RSE licensee for the internal review and authorisation of that information. It is the responsibility of the Board and senior management of the RSE licensee to ensure that an appropriate set of policies, procedures and controls for the authorisation of information submitted to APRA is in place.

Authorisation

17.         When an officer or agent of an RSE licensee 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.

18.         If the information required by this Reporting Standard is provided by an agent who submits the information on the RSE licensee’s behalf, the RSE licensee must:

(a)          obtain from the agent a copy of the completed form with the information provided to APRA; and

(b)          retain the completed copy.

19.         An officer or agent of an RSE licensee who submits the information under this Reporting Standard for, or on behalf of, the RSE licensee must be authorised by either:

(a)          the Chief Executive Officer of the RSE licensee; or

(b)          the Chief Financial Officer of the RSE licensee.

Minor alterations to forms and instructions

20.         APRA may make minor variations to:

(a)          a form that is part of this Reporting Standard, and the instructions to such a form, to correct technical, programming or logical errors, inconsistencies or anomalies; or

(b)          the instructions to a form, to clarify their application to the form,

without changing any substantive requirement in the form or instructions.

21.         If APRA makes such a variation, it must notify each RSE licensee that is required to report under this Reporting Standard.

Interpretation

22.         In this Reporting Standard:

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

Chief Executive Officer means the chief executive officer of the RSE licensee, by whatever name called, and whether or not he or she is a member of the Board of the RSE licensee[3].

Chief Financial Officer means the chief financial officer of the RSE licensee, by whatever name called.

defined benefit RSE has the meaning of defined benefit fund in subsection 10(1) of the SIS Act.

due date means the relevant due date under paragraph 7, 9, 10, or, if applicable, paragraph 13 of this Reporting Standard.

reporting period means a period mentioned in paragraph 5 or, if applicable, paragraph 11 of this Reporting Standard.

RSE means a registrable superannuation entity as defined in subsection 10(1) of the SIS Act that is not a defined benefit RSE, pooled superannuation trust, ERF, small APRA fund or single member approved deposit fund[4].

RSE auditor means an auditor appointed by the RSE licensee to perform functions under this Reporting Standard.

RSE licensee has the meaning given in subsection 10(1) of the SIS Act.

SIS Act means Superannuation Industry (Supervision) Act 1993.

23.         In this Reporting Standard, unless the contrary intention appears, a 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.

24.         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 SRF 251.0

Insurance arrangements

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form SRF 251.0 Insurance arrangements (SRF 251.0). This form collects information on the acquired insurance arrangements of a registrable superannuation entity (RSE) and defined benefit RSE.

General directions and notes

Reporting level

SRF 251.0 must be completed for each registrable superannuation entity (RSE) and defined benefit RSE.

Reporting tables

Tables described in this reporting form 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.

The Unique identifier column indicates which field or fields form the primary key of the table. Where a field has ‘Y’ in the Unique identifier column, this denotes that this field forms part of the primary key for the table. A blank cell in the Unique identifier column means that the field does not form part of the primary key for the table. Any specific combination of values in the fields that form the primary key of a table must not appear on more than one row in that table when reported.

Reporting basis and units of measurement

Amounts in SRF 251.0 are to be reported as whole numbers or whole dollars.

Items on SRF 251.0 must be reported as at the end of the reporting period.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in Reporting Standard SRS 101.0 Definitions for Superannuation Data Collections (SRS 101.0).

Specific instructions

Table 1: Insurance arrangements

Report in table 1 all insurance policies, currently or previously held by the RSE licensee which:

1)     Were in force at any time during the reporting period or in the 5 years prior to the start of the reporting period; or

2)     For which one or more of the following activities occurred during the reporting period:

a)      Premiums were paid to the insurer; or

b)     Claims were received, processed or paid.

3)     For the period ending 30 June 2021 only: For which one or more of the following activities occurred during the five years prior to the start of the reporting period:

a)      Premiums were paid to the insurer; or

b)     Claims were received, processed or paid.

Report each such group insurance policy as a separate line with a unique insurance cluster identifier.

Aggregate into insurance clusters, by insurer, all such individual insurance policies held by the RSE licensee. Report all insurance clusters that cover or covered five per cent or more of the total number of member accounts with individual insurance policies.

Where the insurance policy has previously been reported, the same insurance cluster identifier should be used as when the insurance policy was last reported.

The insurance clusters reported will cover all group insurance policies, but may not cover all individual insurance policies held by the RSE licensee in respect of members of the RSE or defined benefit RSE.

Reporting Form SRF 251.1

Insurance coverage

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form SRF 251.1 Insurance coverage (SRF 251.1). This form collects information on the linkages between insurance policies and superannuation products, as well as the decisions that members are making in relation to their insurance cover within superannuation.

General directions and notes

Reporting level

SRF 251.1 must be completed for each group insurance policy within the RSE or defined benefit RSE which has been in force at any time during the reporting period.

Reporting tables

Tables described in this reporting form 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.

The Unique identifier column indicates which field or fields form the primary key of the table. Where a field has ‘Y’ in the Unique identifier column, this denotes that this field forms part of the primary key for the table. A blank cell in the Unique identifier column means that the field does not form part of the primary key for the table. Any specific combination of values in the fields that form the primary key of a table must not appear on more than one row in that table when reported.

Reporting basis and unit of measurement

Amounts in SRF 251.1 are to be reported as whole numbers or whole dollars.

Items on SRF 251.1 must be reported as at the end of the reporting period, as at the start of the reporting period or with respect to transactions that occurred during the reporting period as specified.

These instructions specify the reporting basis and unit of measurement that apply to each item.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in Reporting Standard SRS 101.0 Definitions for Superannuation Data Collections (SRS 101.0).

Specific instructions

Table 1: Insurance offerings

Report columns 1 to 4 and 8 as at the end of the reporting period. Report column 5 as at the start of the reporting period. Report columns 6 and 7 with respect to transactions that occurred during the reporting period.

Table 2: Member insurance choice

Report Table 2 as at the end of the reporting period.

Reporting Form SRF 251.2

Insurance payments

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form SRF 251.2 Insurance payments (SRF 251.2). This form collects information on premium payments made to insurers and the claims management process.

General directions and notes

Reporting level

SRF 251.2 must be completed for each RSE or defined benefit RSE.

Reporting tables

Tables described in this reporting form 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.

The Unique identifier column indicates which field or fields form the primary key of the table. Where a field has ‘Y’ in the Unique identifier column, this denotes that this field forms part of the primary key for the table. A blank cell in the Unique identifier column means that the field does not form part of the primary key for the table. Any specific combination of values in the fields that form the primary key of a table must not appear on more than one row in that table when reported.

Reporting basis and unit of measurement

Amounts in SRF 251.2 are to be reported as whole dollars.

Items on SRF 251.2 must be reported as at the end of the reporting period or with respect to transactions that occurred during the reporting period. Unless otherwise specified, report information with respect to transactions that occurred during the reporting period.

These instructions specify the reporting basis and unit of measurement that applies to each item.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in Reporting Standard SRS 101.0 Definitions for Superannuation Data Collections (SRS 101.0).

Specific instructions

Table 1: Premiums paid

Report all premiums paid to insurers or rebates received during the reporting period.

Table 2: Claims admitted

Report all claims that were admitted during the reporting period.

Table 3: Claims paid

Report all claims that were paid during the reporting period.

Table 4: Claims processing

Report all claims that were processed during the reporting period.

Table 5: TPD assessment

Report TPD claims that were processed during the reporting period.

Reporting Form SRF 251.3

Insurance premiums

Instruction Guide

This instruction guide is designed to assist in the completion of Reporting Form SRF 251.3 Insurance premiums (SRF 251.3). This form collects information on insurance premiums disclosed to members on a forward-looking basis.

General directions and notes

Reporting level

SRF 251.3 must be completed for each group insurance policy within an RSE or defined benefit RSE in force as at the end of the reporting period.

Reporting on SRF 251.3 must include each group insurance policy that is offered on a default basis and has been reported as such in ‘Insurance Default Cover Offered Indicator’ (SRF 251.1 table 1, column 4).

Reporting tables

Tables described in this reporting form 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.

The Unique identifier column indicates which field or fields form the primary key of the table. Where a field has ‘Y’ in the Unique identifier column, this denotes that this field forms part of the primary key for the table. A blank cell in the Unique identifier column means that the field does not form part of the primary key for the table. Any specific combination of values in the fields that form the primary key of a table must not appear on more than one row in that table when reported.

Reporting basis and unit of measurement

Items on SRF 251.3 must be reported as at the end of the reporting period, or, where an RSE licensee is submitting ad-hoc information, as at the date of the change.

These instructions specify the reporting basis and unit of measurement that applies to each item.

Definitions

Terms highlighted in bold italics indicate that the definition is provided in Reporting Standard SRS 101.0 Definitions for Superannuation Data Collections (SRS 101.0).

Specific instructions

Table 1: Insurance tables

Table 1 defines insurance tables that are used to group premiums disclosed in Table 2. Report under Table 1 to define all insurance tables for each group insurance policy within the RSE.

Where different premium rates apply to different occupation categories, report a row with a different Insurance Table Identifier for each premium rate in table 1.  RSE licensees should report ‘Yes’ in ‘Occupation Category Cover Included Indicator’ columns (SRF 251.3 table 1, columns 7 to 12) for one or more occupation categories that would be covered under the RSE's occupation definition.

Reporting on SRF 251.3 must include each group insurance policy that is offered on a default basis and has been reported as such in ‘Insurance Default Cover Offered Indicator’ (SRF 251.1 table 1, column 4).

Table 2: Insurance premiums

Report the items in Table 2 for each premium disclosed for each insurance table defined in Table 1 as at the end of the reporting period. This table collects information on insurance premiums disclosed to members on a forward-looking basis.

[1] For the purposes of this Reporting Standard, an RSE licensee’s ‘business operations’ includes all activities it conducts as an RSE licensee (including the activities of each RSE of which it is the licensee), and all other activities of the RSE licensee to the extent that they are relevant to, or may impact on, its activities as an RSE licensee. For the avoidance of doubt, if the RSE licensee is trustee of more than one RSE or defined benefit RSE, the RSE licensee must separately provide the information required by this Reporting Standard for each RSE or defined benefit RSE within its business operations. An RSE licensee that does not have any RSEs or defined benefit RSEs within its business operations is not required to provide information under this Reporting Standard.

[2] Refer also to Prudential Standard SPS 310 Audit and Related Matters (SPS 310).

[3] Refer to Prudential Standard SPS 510 Governance.

[4] For the purposes of this Reporting Standard, ‘pooled superannuation trust’ has the meaning given in subsection 10(1) of the SIS Act, ‘small APRA fund’ means a superannuation entity that is a regulated superannuation fund, within the meaning of the SIS Act, which has no more than six members and ‘single member approved deposit fund’ means a superannuation entity that is an approved deposit fund, within the meaning of the SIS Act, which has only one member.