First it was the bad news, now it's the good news!
Corporate insurance buyers, and especially those who own an overseas captive insurer, will be relieved at the latest developments in the foreign insurer saga. The DOFI legislation (that has now passed through Parliament) makes it illegal for a foreign insurer to write Australian insurance business, subject to limited 'exemptions'. The subsequent APRA discussion paper on how it intends to regulate the insurers gave no indication of relief other than again using the term 'limited exemptions'. The feeling in the market was that it was likely that most captive insurance companies would have to comply with the DOFI administrative requirements, i.e. become authorised in Australia, use an Australian authorised insurer as a front, or cease using a foreign captive.Download Publication