The Australian Prudential Regulation Authority (APRA) has today issued a consumer warning about Atlantic & Pacific Insurance Ltd (Atlantic & Pacific), a company claiming to be incorporated and registered in the Republic of the Marshall Islands as a general insurance company and offering insurance to Australian consumers.
APRA has issued the alert after conducting inquiries and receiving advice from the Office of the Attorney General of the Republic of the Marshall Islands that contrary to representations made by Atlantic & Pacific it is neither registered nor incorporated in the Marshall Islands.
Atlantic & Pacific has been active in offering and providing Public Liability Insurance to Australian consumers via a number of insurance brokers in Australia. The information available to APRA about the disclosure being made to Australian consumers by Atlantic & Pacific is that it claims to be registered and incorporated in the Republic of the Marshall Islands and to be subject to financial supervision in the United States of America, in so far as it relates to a United States Territory. APRA has advice and information indicating that these assertions are incorrect.
"APRA has secured the acknowledgment of the insurance broker that was wholesaling Atlantic & Pacific products that Atlantic & Pacific is not a registered insurance company in any jurisdiction. The broker, Allied Asia, has commenced notifying all policy holders of this fact, and has undertaken to secure alternative insurance cover for them." said Mr Graeme Thompson, APRA CEO. "We have taken all the available steps to protect the interests of Australian policyholders."
Current legislation (Insurance (Agents and Brokers) Act 1984) allows insurance brokers or registered foreign insurance agents to offer and provide consumers with access to insurance products sourced from foreign insurers who are not authorised insurers under Australian law. In these instances legislation also requires that the insurance broker or foreign agent provide the consumer with appropriate notification and disclosure regarding the placement of business with such a foreign insurer.
Consumers with policies written by Atlantic & Pacific should take immediate action and contact their broker to ascertain whether they are covered or have policies that may be affected.
"APRA will continue to make inquiries into the activities of Atlantic & Pacific and other foreign insurers that are not authorised insurers under Australian law and is working closely with other regulators" said Mr Thompson. "APRA has already provided information to ASIC to enable it to take action under legislation it administers"
A list of all companies authorised to conduct insurance business in Australia appears on APRAs website at www.apra.gov.au. The APRA call centre on 1300 131060 can answer queries about the license status of individual companies.
Note to editors:
Please also refer to APRA media release date 15/4/02 titled "Consumer warning - Unauthorised foreign insurers issuing insurance products in Australia"
