Licensing guidelines for general insurers
Understand APRA’s licensing process as a general insurer.
Licensing process at a glance
Engaging early with APRA's licensing team is highly recommended. This helps prospective applicants understand the licensing process, clarify expectations and identify potential issues before lodging an application.
The pre-application process is structured to support applicants in refining their business plans and receive feedback to ensure alignment with APRA's prudential requirements. This stage typically involves several engagements where APRA provides feedback and understands your readiness to apply. Key focus areas include governance, ownership and controllers, financial resources, risk management, IT strategy, outsourcing, and contingency planning.
When ready, businesses submit their formal application with Board-approved documentation and pay the application fee. APRA begins its assessment when a substantial and high-quality set of material has been received. Applicants must provide detailed information about their ownership, financial position, governance and risk frameworks. The licensing assessment process is iterative, often taking 12-18 months, as APRA reviews, requests updates, and assesses the applicant’s ability to operate safely and soundly within the financial system.
Once APRA completes its review, a decision is typically issued within 90 days. If approved, licences may include conditions tailored to the specific business model. If declined, APRA will provide written reasons and information outlining review and appeal options.
After licensing, entities are subject to APRA's prudential standards, ongoing supervision, and annual levies. Entities must report regularly through APRA's data collection systems, promptly notify APRA of material changes, and comply with industry-specific disclosure and approval requirements. Additional conditions or reporting may apply depending on the licence type.
All licensed institutions are listed on APRA's public registers, supporting transparency and accountability across the financial system.
Read APRA's licensing process in more detail
Key documents
Who needs a general insurance licence?
Under theInsurance Act 1973 (the Insurance Act), it is an offence to conduct insurance business in Australia without the proper authority. If your business intends to conduct any business that can be classed as insurance business, you need a licence from APRA giving you the authority to conduct insurance business in Australia.
Part 3 of the Insurance Act defines ‘insurance business’ as the business of undertaking liability by way of insurance (including reinsurance), in respect of any loss or damage. It includes liability to pay damages or compensation, contingent upon the happening of a specified event, and any business incidental to insurance business as so defined. There are some exclusions to the definition of insurance business, such as life insurance (covered by the Life Insurance Act 1995), health insurance (covered by the Private Health Insurance Act 2007) or the provision of benefits for funeral services.
The Insurance Act only allows corporations or Lloyd’s underwriters to carry out insurance business in Australia, which means APRA cannot consider applications from partnerships or unincorporated entities.
Application guidelines
Information on the licensing and authorisation of general insurers is available in Guidelines on Authorisation of General Insurers:
Read guidelines on authorisation of general insurers - December 2007
The guidelines outline APRA’s authorisation process for general insurers, including the minimum criteria to be addressed by applicants and the necessary information required to be lodged with an application.
Before you lodge your application to be a general insurer, ensure you have read and are familiar with the prudential framework for general insurers, including relevant legislation, prudential standards and prudential practice guides.