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APRA releases new intermediated general insurance statistical publication

Wednesday 28 March 2012

 

12.09

The Australian Prudential Regulation Authority (APRA) today released the new publication Intermediated General Insurance Statistics. The publication will cover a six-month reference period and will be released on a biannual basis.

The publication provides an overview of intermediated general insurance business placed with Lloyd’s underwriters, unauthorised foreign insurers (UFIs) and APRA-regulated general insurers. The statistics include detailed information about risks placed with UFIs, which are not regulated by APRA.

The publication will enable policy-makers and regulators to monitor insurance business being placed offshore to UFIs, and will promote understanding of intermediated general insurance by general insurers, other general insurance intermediaries, professional bodies, researchers and the public.

The December 2011 edition of the Intermediated General Insurance Statistics publication shows that for the six months ended 31 December 2011, $8.9 billion in premium was invoiced by general insurance intermediaries. Of this, $685 million (8 per cent) was placed with UFIs. There were 1,535 intermediaries licensed to place general insurance business and 63 placed business with UFIs. Approximately 45 per cent of the $15.2 billion of direct premium written by APRA-regulated general insurers in this period was placed by intermediaries.

The main locations of the UFIs where business was placed during this period were the United Kingdom, Singapore and Bermuda. Australian policyholders used UFIs to protect a variety of risks, including commercial property, marine and aviation, and public and product liability. Commercial property, with 63 per cent of the total business placed with UFIs, was the largest class of business where UFIs were used during the period.

APRA’s consultation on the new publication closed on 12 July 2011. Refer to the discussion paper and APRA’s response to industry submissions and the 31 December 2011 Intermediated General Insurance Statistics publication.

The Australian Prudential Regulation Authority (APRA) is the prudential regulator of the financial services industry. It oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurers, friendly societies, and most members of the superannuation industry. APRA currently supervises institutions holding $6 trillion in assets for Australian depositors, policyholders and superannuation fund members.