PwC Insurance Facts and Figures 2011 - PricewaterhouseCoopers

Categories of general insurer
The different categories of insurers referred to in the GI Prudential Standards are defined in
GPS 001 Definitions as follows:
Category
A
B
C
D
E
Description
• Insurers incorporated in Australia, excluding all insurers falling within
any other categories below.
• Wholly owned subsidiaries of corporate groups that are not insurance
groups fall into this category where they do not already fall into another
category below.
• Insurers incorporated in Australia and a subsidiary of a local or foreign
insurance group.
• An insurance group captive is not a Category B insurer.
• A foreign insurer operating as a foreign branch in Australia; could be a
branch of a foreign mutual or shareholder company.
• Often referred to as ‘association captives’; an insurer incorporated in
Australia that:
––
is owned by an industry or a professional association, or by the members
of the industry or professional association or a combination of both; and
––
only underwrites business risks of the members of the association or
those who are eligible, under the articles of the association or constitution
of the association, to become members of the association; but
––
is not a medical indemnity insurer as defined under the Medical
Indemnity Act 2002.
• Often referred to as ‘sole parent captives’; an insurer incorporated in
Australia that is a corporate captive or partnership captive.
Licensing
Private sector general insurance companies may conduct insurance business in Australia
only if authorised under the Insurance Act. APRA can impose and vary licence conditions
of an insurer under Section 13 and exempt an insurer from complying with all or part of the
Insurance Act under Section 7.
In addition to requiring compliance with prudential standards, APRA may request
additional information as it sees fit. The information expected to be provided includes:
• Details of the ownership structure, board and management (including resumes and the
company’s constitution);
• Applications for the proposed appointed auditor and actuary;
• A three-year business plan with financial and capital adequacy projections, including
sensitivity analysis;
• Systems and controls documentation (risk management strategy, reinsurance management
strategy, business continuity plan and details of accounting and reporting systems);
Insurance Facts and Figures 2011 49