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APRA GPS 116 Capital Adequacy: Insurance Concentration Risk Charge

Establishes the methodology for calculating the insurance concentration risk charge for general insurers regulated by APRA. Relevant to Australian general insurance companies.

View official source document

Rules extracted

Obligations decomposed

6.7x

Avg obligations per rule

🇦🇺 Australia

Jurisdiction

What AuditDSS covers

Source

Regulation

Extracted

Rules

Decomposed

Obligations

6.7x

Decomposition ratio

Each rule is decomposed into an average of 6.7 atomic obligations — the smallest testable units that can be independently violated.

Fully extracted & scored

All 67 obligations have been decomposed, titled, risk-scored, and embedded for semantic matching.

Risk scoring

Every obligation in GPS 116 is scored across independent risk dimensions:

Obligation Weight

How critical within the regulatory framework

Violation Likelihood

How often breached in practice

Enforcement Evidence

Regulator enforcement history and penalties

Cascade Dependency

How many obligations depend on this one

Regulatory details

Full title: APRA GPS 116 Capital Adequacy: Insurance Concentration Risk Charge
Regulatory body: Australian Prudential Regulation Authority
Jurisdiction: 🇦🇺 Australia
Document type: prudential-standard
Effective date: January 1, 2023
Issuing authority: Australian Prudential Regulation Authority (APRA)
Industry: Insurance
Official source: View source document ↗

Who this applies to

general insurers

Key requirements

insurance concentration risk charge
natural perils modelling
non-natural perils assessment
catastrophe modelling
reinsurance recognition
1-in-200-year loss event
reporting to APRA

Frequently asked questions about GPS 116

What is GPS 116?

Establishes the methodology for calculating the insurance concentration risk charge for general insurers regulated by APRA. Relevant to Australian general insurance companies.

Who does GPS 116 apply to?

GPS 116 applies to general insurers.

How many obligations does GPS 116 contain?

AuditDSS has decomposed GPS 116 into 67 atomic obligations from 10 rules. Each obligation is independently testable and risk-scored.

What are the key requirements of GPS 116?

The key requirements include: insurance concentration risk charge, natural perils modelling, non-natural perils assessment, catastrophe modelling, reinsurance recognition, 1-in-200-year loss event, reporting to APRA.

How can I assess my GPS 116 compliance?

Upload your compliance policy to AuditDSS. The platform maps your document against all 67 GPS 116 obligations using deterministic AI scoring — not checklists or LLM summaries. You get a risk-scored gap analysis showing exactly which obligations are covered, partially covered, or missing.

Which jurisdiction enforces GPS 116?

GPS 116 is enforced in Australia by Australian Prudential Regulation Authority.

When did GPS 116 come into effect?

GPS 116 became effective on January 1, 2023.

What industry does GPS 116 apply to?

GPS 116 is primarily relevant to the Insurance industry. AuditDSS covers 98 regulations in this industry sector.

Build a GPS 116 compliance pack

Don't have a compliance policy yet? AuditDSS generates a complete compliance pack for GPS 116 — alone or combined with other regulations your business needs. Every clause is mapped to specific obligations.

Policy

High-level commitments and governance framework covering GPS 116 requirements.

Procedures

Step-by-step operational procedures to implement each policy commitment.

Forms & checklists

Ready-to-use forms, registers, and checklists for day-to-day compliance operations.

Multi-regulation

Combine GPS 116 with other regulations into a single unified compliance pack for your business.

Build GPS 116 compliance pack

Already have a policy? Assess it against GPS 116

Upload your document

Upload your compliance policy, program manual, or operational document. AuditDSS accepts any text-based document.

AI maps against 67 obligations

Your document is scored against every obligation in GPS 116. Each claim is mapped to the obligation tree and evaluated for coverage.

Risk-scored gap report

Receive every gap ranked by risk priority with remediation guidance, enforcement evidence, and cascade impact analysis.