Outsourcing Expertise
We primarily work with overseas-based insurers and reinsurers operating a branch or subsidiary in Australia or looking to enter the Australian market with limited physical presence and infrastructure set-up costs.
Our clients comprise of mid to large sized reinsurers or insurers, who choose to outsource specialised regulatory or financial management roles and responsibilities to us.
Whilst most of our clients are market competitors, we maintain a strict level of independence by not providing any services or advisory related to marketing, sales or underwriting.
Unique Offering
Our services are designed and structured to provide both short term and long-term capabilities as well as being geared to support operations of all sizes and complexities.
Our key services cover nine areas, including Advisory, Regulatory, Risk, Compliance, Financial Management, Technical Accounting, Tax Administration, Investment Administration and Support Services.
Services can be bundled or taken up individually through two core fee models – Time Cost and Fixed Fee. We are able to cover all critical regulatory roles required to operate as a General Insurer or Reinsurer in Australia.
Our most common client engagement includes providing the Agent and Alternate Agent Role in Australia (for branches of foreign insurers), assisting with the implementation and management of the APRA risk framework, providing local compliance oversight, preparing and lodging APRA regulatory returns and providing an end-to-end financial management and technical accounting solution. This model allows our clients to limit their Australian-based resources, reducing overhead expenses associated with maintaining offices and employees – including the associated costs and liabilities.
APRA Process
We are highly experienced in preparing and lodging applications for authorisation to write insurance business in Australia with the regulator, APRA. We’re confident in our deep, practical understanding of the requirements, and regularly assist clients to complete the process.
APRA has a standard four-step process for licensing insurers to operate in Australia. The rules and requirements for establishing an APRA-regulated entity in Australia vary somewhat depending on the type of business that is being established.
Before contacting APRA it is a good idea to have a clear view on the following areas:
- Business plan
- Structure – owners and controllers, board, governance and senior management, use of outsourcing
- Risk management
- Financial resources, including funding IT
After talking to APRA about the process, their expectations, any initial concerns they may have and the documentation required, you can lodge a formal application.
This step also involves providing information on all of the areas above and demonstrating that you understand APRA’s requirements and the responsibilities under the prudential framework.
A non-refundable licence application fee is payable when the application is lodged. This is currently $110,000 for both Life and General insurers.
Once the application is lodged, APRA will assess it. This may involve requests for additional information, discussions and on-site visits (including detailed Prudential Consultations or Reviews) to assess capabilities.
The assessment is likely to take between 3 and 18 months, depending on the complexity and nature of the approval being sought.
Once a decision is reached, a licence will be granted, denied or issued with conditions.
If a licence is granted you must continue to meet APRA’s prudential standards, proportional to the business, and be able to demonstrate that standards are being met.
There will also be ongoing supervision by APRA and an annual supervisory levy to be paid.