Acronyms and abbreviations
| AASB | Australian Accounting Standards Board |
| AGA | Australian Government Actuary |
| AGD | Attorney General’s Department |
| ANAO | Australian National Audit Office |
| ANZIIF | Australian and New Zealand Institute of Insurance and Finance |
| AMB | A.M. BEST |
| APRA | Australia Prudential Regulation Authority |
| APSC | Australian Public Service Commission |
| ARPC | Australian Reinsurance Pool Corporation |
| ASX | Australian Stock Exchange |
| ATO | Australian Taxation Office |
| CAE | Chief Audit Executive |
| CBD | Central business District |
| CEO | Chief Executive Officer |
| CFO | Chief Financial Officer |
| CIPMA | Critical Infrastructure Protection Modelling and Analysis |
| COO | Chief Operating Officer |
| CUO | Chief Underwriting Officer |
| CY | Calendar year |
| DTI | Declared terrorist incident |
| FMO | Finance Minister’s Orders |
| FOI Act | Freedom of Information Act 1982 |
| GA | Geoscience Australia |
| GST | Goods and services tax |
| GWP | Gross written premium |
| HR | Human resources |
| ILS | Integrated Leadership System |
| IPS | Information Publication Scheme |
| OECD | Organisation for Economic Co-operation and Development |
| PGPA | Public Governance, Performance and Accountability Act 2013 |
| PID | Public Interest Disclosure Act 2013 |
| PMS | Performance Management System |
| RBA | Reserve Bank of Australia |
| RISe | Reinsurance information system, ARPC’s insurer customer information management system |
| RMS | Risk management strategy |
| S&P | Standard and Poor’s |
| SES | Senior executive staff |
| TI Act | Terrorism Insurance Act 2003 |
| WHS Act | Work Health and Safety Act 2011 |
| WHS | Work Health and Safety |
Glossary
| Aggregate sums insured | The total of all a cedant’s property sums in a reporting zone, such as ARPC’s tiers. |
| Calendar year | Refers to 1 January to 31 December of a particular year. |
| Capacity | The ability of an insurer, reinsurer, syndicate or market to absorb risk. |
| Captive insurer | An insurance company that is wholly owned by one or more entities (parent organisations) and whose main purpose is insuring the parent company’s risks. |
| Co-reinsurance | A ‘co-reinsurance’ warranty may be imposed on some catastrophe excess of loss and stop loss contracts. The effect is to require the reinsured to retain net and unprotected a specified percentage of a layer such that it maintains an interest in economical loss settlement once the deductible has been exceeded. |
| Deductible | The loss the reinsured assumes for its own account in non-proportional reinsurance. |
| Financial year | Refers to 1 July to 30 June of a particular year. |
| Insurer customer | An insurer that transfers all or part of a risk to a ceding reinsurer. |
| Reinsurance | Reinsurance is insurance that is purchased by an insurance company from one or other insurance companies (the reinsurer) directly or through a broker as a means of risk management. |
| Retention | The amount retained by a reinsured after placing reinsurance. |
| Retrocession | Reinsurance purchased by reinsurance companies as a means of risk management. |
| Retrocessionaire | A reinsurer that accepts retrocession business, reinsuring reinsurers. |
| Triennial review | A review which examines the need for the TI Act to continue to operate and occurs every three years. |
| Underwriting year | An underwriting year includes all premiums for all policies commencing within the financial year. |
List of requirements – corporate Commonwealth entities
Below is the table set out in Schedule 2A of the PGPA rule. Section 17BE (u) requires this table to be included in entities’ annual reports.
| PGPA Rule Reference | Part of Annual Report | Description | Requirement |
|---|---|---|---|
| 17BE | Contents | ||
| 17BE(a) | Background | Details of the legislation establishing the body | Mandatory |
| 17BE(b)(i) | Entity Functions | A summary of the objects and functions of the entity as set out in the legislation | Mandatory |
| 17BE(b)(ii) | Background | The purposes of the entity as included in the entity’s corporate plan for the reporting period | Mandatory |
| 17BE(c) | Governance Framework | The names of the persons holding the position of responsible Minister or responsible Ministers during the reporting period and the titles of those Responsible Ministers | Mandatory |
| 17BE(d) | Compensating the Government | Directions given to the entity by the Minister under an Act or instrument during the reporting period | If applicable, mandatory |
| Transactions with the Government as owners | |||
| 17BE(e) | Confirms no GPOs | Any government policy order (GPO) that applied in relation to the entity during the reporting period under section 22 of the Act | If applicable, mandatory |
| 17BE(f) | NA | Particulars of non-compliance with: a) a direction given to the entity by the Minister under an Act or instrument during the reporting period; or b) a government policy order that applied in relation to the entity during the reporting period under section 22 of the Act | If applicable, mandatory |
| 17BE(g) | Annual Performance Statement | Annual performance statements in accordance with 39(1)(b) of the Act and section 16F of the rule | Mandatory |
17BE(h), 17BE(i) | NA | A statement of significant issues reported to the Minister under paragraph 19(1)(e) of the Act that relates to non- compliance with finance law and action taken to remedy non-compliance | If applicable, mandatory |
| 17BE(j) | Board Members | Information on the accountable authority or each member of the accountable authority, of the entity during the reporting period | Mandatory |
| 17BE(k) | Organisational Chart | Outline of the organisational structure of the entity (Including any subsidiaries of the entity) | Mandatory |
| 17BE(ka) | ARPC’s People | Statistics on the entity’s employees on an ongoing and non-ongoing basis, including the following: a) statistics on full-time employees; b) statistics on part-time employees; c) statistics on gender; d) statistics on staff location | Mandatory |
| 17BE(l) | The Terrorism Reinsurance Pool | Outline of the location (whether or not in Australia) of major activities or facilities of the entity | Mandatory |
| 17BE(m) | Governance | Information relating to the main corporate governance practices used by the entity during the reporting period | Mandatory |
17BE(n), 17BE(o) | Financial Statements | For transactions with a related Commonwealth entity or related company where the value of the transaction, or if there is more than one transaction, the aggregate of those transactions is more than $10,000 (inclusive of GST): a) the decision-making process undertaken by the accountable authority to approve the entity paying for a good or service from, or providing a grant to, the related Commonwealth entity or related company; and b) the value of the transaction, or if there is more than one transaction, the number of transactions and the aggregate value of the transactions | If applicable, mandatory |
| 17BE(p) | NA | Any significant activities and changes that affected the operation and structure of the entity during the reporting period | If applicable, mandatory |
| 17BE(q) | Judicial and administrative decisions Confirmed NA | Particulars of judicial decisions or decisions of administrative tribunals that may have a significant effect on the operations of an entity | If applicable, mandatory |
| 17BE(r) | NA | Particulars of any reports on the entity given by: a) the Auditor General (other than a report under section 43 of the Act); or b) a Parliamentary Committee; or c) the Commonwealth Ombudsman; or d) the Office of the Australian Information Commissioner | If applicable, mandatory |
| 17BE(s) | NA | An explanation of information not obtained from a subsidiary of the entity and the effect of not having the information on the annual report | If applicable, mandatory |
| 17BE(t) | Board oversight of risk | Details of any indemnity that applied during the reporting period to the accountable authority, any member of the accountable authority or officer of the entity against a liability (including premiums paid, or agreed to be paid, for insurance against the authority, member or officer’s liability for legal costs) | If applicable, mandatory |
| 17BE(taa) | Governance | The following information about the audit committee for the entity: a) a direct electronic address of the charter determining the functions of the audit committee b) the name of each member of the audit committee c) the qualifications, knowledge, skills or experience of each member of the audit committee d) information about each member’s attendance at meetings of the audit committee e) the remuneration of each member of the audit committee | Mandatory |
| 17BE(ta) | Key Management Personnel Remuneration | Information about executive remuneration | Mandatory |
| 17BF | Disclosure requirements for government business enterprises | ||
17BF(1) (a)(i) | NA | An assessment of significant changes in the entity’s overall financial structure and financial conditions | If applicable, mandatory |
17BF(1) (a)(ii) | NA | An assessment of any events or risks that could cause financial information that is reported not to be indicative of future operations or financial conditions | If applicable, mandatory |
| 17BF(1)(b) | NA | Information on dividends paid or recommended | If applicable, mandatory |
| 17BF(1)(c) | NA | Details of any community service obligations the government business enterprise has including: a) an outline of actions taken to fulfil those obligations; and b) an assessment of the cost of fulfilling those obligations | If applicable, mandatory |
| 17BF(2) | NA | A statement regarding the exclusion of information on the grounds that the information is commercially sensitive and would be likely to result in unreasonable commercial prejudice to the government business enterprise | If applicable, mandatory |