Licensing guidelines for life insurers and friendly societies
Understand APRA’s licensing process as a life insurers and friendly societies.
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 life insurance or friendly societies licence?
Under the Life Insurance Act (the Life Act), a person must not intentionally carry on life insurance business in Australia unless they are registered to do so. If your business intends to conduct any business that can be classed as life insurance business, you need a licence from APRA registering you to conduct life insurance business in Australia.
Part 2 of the Life Act defines ‘life insurance business’ as business that consists of issuing life policies, undertaking liability under such policies, and any business that relates to this business.
The Life Act only allows corporations to carry on life insurance business in Australia, which means APRA cannot consider applications from partnerships or unincorporated entities.
Friendly societies
A friendly society, sometimes referred to as a mutual society, is a financial organisation owned by its members and not shareholders. Friendly societies that are conducting life business are required to be registered by APRA under the Life Act.
The expression ‘friendly society’ in relation to a financial business is a restricted expression. This means you can only refer to your business as a friendly society once APRA has registered you as a friendly society under the Life Act.
Application guidelines
For more information on the licensing and registration of life insurers and friendly societies, see the guidelines on registration of life companies. The guidelines outline APRA’s authorisation process for life insurers and friendly societies, including the minimum criteria to be addressed by applicants and the necessary information required to be lodged with an application.
Read guidelines on registration of life companies -May 2010
Before you lodge your application for a life insurer or friendly society licence, ensure you have read and are familiar with the prudential framework for life insurers and friendly societies, including relevant legislation, prudential standards and prudential practice guides.