Foreign insurers get extension
John Trowbridge
The Australian Prudential Regulation Authority has acceded to industry requests and will allow foreign insurers more time to apply for a licence to write business in Australia.
APRA member John Trowbridge said the application deadline had been extended from May 31 to June 30, with those foreign insurers who submitted the application and paid their application fee by June 30 being allowed to continue to operate in the Australian market for up to six months while their applications are being processed.
“APRA is confident that this six month time-frame will be sufficient for APRA to conclude its assessment of applications,” Trowbridge said.
He said extending the deadline for the submission of applications would assist foreign insurers who, to date, had been uncertain whether they would apply for authorisation.
The need for foreign insurers to seek licensing follows passage through the Parliament last year of the Financial Sector Legislation Amendment (Discretionary Mutual Funds and Director Offshore Foreign Insurers) Act.
The legislation is intended to ensure that Australian policyholders have the security of knowing that their insurers are covered by the Australian Prudential Regulation Authority.
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Mike Taylor
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