Authorisation Guidance Note (June 2000)

The Australian Prudential Regulation Authority (APRA) today released for comment a draft Guidance Note on authorisation requirements for prospective insurers, as part of the current review of prudential supervisory arrangements for the general insurance industry.

The guidelines contained in the Guidance Note aim to ensure that insurers commence operations with adequate resources and appropriate systems to carry on insurance business in Australia. In order to gain an authority from APRA to commence operations, an insurer will need to satisfy APRA that it has sufficient capital, expertise and appropriate risk management strategies in place to enable it to comply with the prudential supervisory requirements applicable to insurers on an on-going basis.

Comments on the draft Guidelines are invited by 26 July 2000. A copy of the draft Guidelines and a Discussion Paper concerning this and other proposed reforms to the prudential supervision of general insurance companies in Australia, can be found on the APRA web site www.apra.gov.au

Enquiries: giregime@apra.gov.au

Comments in writing can be made to:

Mr Brian Gray
Executive General Manager
Policy, Research and Consulting
Australian Prudential Regulation Authority
GPO Box 9836
Sydney NSW 2001

For further information:

Gloria Peterson
Public Affairs Manager
02 9210 3385