Reporting requirements for dealing with UFIs and in atypical risks - 15 September 2009
On Friday 11 September 2009, Treasury released draft Corporations Amendment Regulations 2009, a draft Explanatory Statement and a Consultation Paper for data collection and reporting requirements addressing the last outstanding element of the DOFI/UFI (unauthorised foreign insurer) reform package which became effective on 1 July last year.
Lenders Mortgage Insurance - Increased hardship threshold to apply to existing credit contracts - 14 September 2009
The National Consumer Credit Protection Bill 2009 (Credit Bill) and related bills were referred to the Senate Economics Legislation Committee (Committee) for inquiry. The Committee released its Report on 7 September 2009.
The Senate Committee Report on the unfair terms bill - Are insurance contracts in or out? - 11 September 2009
The Trade Practices Amendment (Australian Consumer Law) Bill 2009 (Bill) was referred to the Senate Economics Legislation Committee (Committee) on 25 June 2009 for inquiry. The Committee received numerous submissions from various organisations and held two public hearings. The Committee released the report on its inquiry into the Bill on 7 September 2009.
Contracts of reinsurance are expressly excluded from the Insurance Act - 8 September 2009
Reinsurers will recall the NSW Supreme Court decision of HIH Casualty & General Insurance Ltd (in liquidation) v Wallace [2006] NSWSC 1150 in which Justice Einstein held that the Insurance Act 1902 (NSW) (“Insurance Act”) applied to reinsurance contracts.
Reporting standards for general insurance groups - 1 September 2009
On 31 August 2009, APRA released the final reporting standards that will apply to general insurance groups.
Insurance and Reinsurance Update - August 2009
Lenders Mortgage Insurance - Which Credit Code? - 6 July 2009
The National Consumer Credit Protection Bill 2009 (Credit Bill) and the National Consumer Credit Protection (Transitional and Consequential Provisions) Bill 2009 (Transitional Bill) were released on 25 June 2009. In our previous alert, we raised certain insurance implications that arise from the exposure draft of the Credit Bill. The release of the Transitional Bill has clarified some of the issues identified in the previous alert.
D&O Insurance premiums - can companies pay? - 1 July 2009
The Trade Practices Amendment (Australian Consumer Law) Bill 2009 (Cth) (Bill) was recently introduced into Federal Parliament. In this alert, we consider issues that involve payment of premiums for directors and officers’ liability insurance cover (D&O Insurance).
Changes to consumer credit regulation - implications for insurance - 19 May 2009
A package including the exposure draft of the National Consumer Credit Protection Bill 2009 (Bill) and associated draft regulations was released on 27 April 2009 with a four week consultation period. The Bill introduces a new Australian credit licensing regime, sets out the requirements under that regime, establishes new “Responsible Lending Conduct” obligations and attaches the National Credit Code as Schedule 1. There are also exposure draft regulations which supplement the Bill.
Insurance and reinsurance update (May 2009)
Australian financial authorities release report on OTC market - 22 May 2009
Today, the three Australian financial authorities (the Australian Prudential Regulation Authority, the Australian Securities and Investment Commission and the Reserve Bank of Australia) published their joint report on the Australian over-the-counter (OTC) derivatives market.
Insurance and reinsurance update - Feb 2009
Capital Adequacy: Internal Model-based Method - 24 December 2008
APRA released a reform package on Friday 19 December 2008 which sets out the requirements that a general insurer or Level 2 insurance group must meet to obtain approval to use an Internal Model-based (“IMB”) Method for determining its Minimum Capital Requirement (“MCR”). The package consists of a revised prudential standard (GPS 113) and a new prudential practice guide (GPG 113), which will become effective from 31 March 2009.
Financial Claims Scheme - new regulations - 24 December 2008
The Insurance Amendment Regulations 2008 were made on 12 December 2008 amending the Insurance Regulations 2002. The amendments facilitate the practical operation of the Financial Claims Scheme (FCS) which was established by amendments to the Insurance Act 1973 (Cth)(Insurance Act) in October 2008.
APRA prudential supervision of general insurance groups - 22 December 2008
On 17 December 2008, APRA released its final Prudential Standards implementing a framework for supervising general insurance groups for a 31 March 2009 commencement.
Guidance on notification of circumstances clauses in claims-made insurance policies - 31 October 2008
The decision of CGU Insurance v Corrections Corporation of Australia Staff Superannuation (2008) FCAFC 173, provides some important guidance to insurers and policy owners alike on the operation of notification of circumstances clauses in claims-made insurance policies. In short, the court refused to narrowly construe the requirement for notification provided in accordance with such clauses.
Policyholder Compensation Facility and a framework for judicial management - 28 October 2008
The Financial System Legislation Amendment (Financial Claims Scheme and Other Measures) Act 2008 (FCS Act) and the Financial Claims Scheme (General Insurers) Levy Act 2008 (GI Levy Act) have commenced, bringing into force the Financial Claims Scheme as it affects general insurers and certain policyholders in the event a general insurer falls into financial difficulty.
Insurance and reinsurance update - October 2008
Treasury releases final DOFI exemption regulations - 24 June 2008
Treasury has now effected the Insurance Amendment Regulations 2008 (Regulations) which provide for limited exemption arrangements for direct offshore foreign insurers (DOFIs) (referred to in the Regulations as “unauthorised foreign insurers”) from the requirement to be authorised by APRA to carry on insurance business in Australia.
Draft DOFI regulations relating to data collection and consumer protection released - 29 May 2008
Treasury has today published on its website draft regulations to complement the DOFI reforms (see link). Submissions on these draft regulations are due on Monday 2 June 2008.
APRA extends the transitional arrangement deadline for DOFIs - 27 May 2008
On 26 May 2008, APRA announced that the deadline for Direct Offshore Foreign Insurers (DOFIs) to make an application to become an authorised insurer has been extended from 31 May 2008 to 30 June 2008.
Limited transitional arrangement for DOFIs under draft regulations - 29 April 2008
On Monday 28 April 2008 Treasury released draft regulations detailing the exemption arrangements for direct offshore foreign insurers (DOFIs). Under the draft regulations and the related amendments to the Insurance Act 1973, DOFIs that are not APRA authorised, do not fall within a proposed exemption, or do not come within the transitional arrangements, will not be able to carry on insurance business in Australia after 1 July 2008.
APRA releases draft prudential framework for general insurance groups - 17 April 2008
On Tuesday, 15 April 2008 APRA released three draft Prudential Standards and a Discussion Paper in connection with its proposed prudential framework for supervision of Level 2 general insurance groups (L2 groups). Once implemented, this prudential framework will require L2 groups to satisfy prudential standards specific to L2 groups.
Regulation of Direct Offshore Foreign Insurers - Limited Exemption Arrangements - 8 April 2008
The Assistant Treasurer and Minister for Competition Policy and Consumer Affairs today announced the limited exemption arrangements for direct offshore foreign insurers.
The reciprocal duty of utmost good faith - 17 September 2007
In CGU Insurance Limited v AMP Financial Planning Pty Ltd, the High Court considered the scope of the duty, imposed by section 13 of the Insurance Contracts Act 1984 (Cth), for parties to act with the “utmost good faith”.
Government announces Insurance Contracts Act 1984 Reform Package- 21 February 2007
The Government is seeking public comments on its draft Insurance Contracts Amendment Bill 2007 and reform package by 23 March 2007. If passed, this Bill will affect all new insurance contracts and policy renewals bought in the Australian market and any primary insurance policies bought offshore. It may apply to variations, extensions or reinstatements.
AML/CTF Act has commenced - 14 December 2006
The Australian Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) has commenced. It received Royal Assent on 12 December 2006. Some key obligations under the Act commenced on 13 December 2006 as follows.
Australian Parliament passes AML/CTF Acts - 7 December 2006
On 7 December 2006, the Australian Senate passed the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and the Anti-Money Laundering and Counter-Terrorism Financing (Transitional Provisions and Consequential Amendments) Act 2006. There are heavy penalties for non compliance.
Corporate class actions in Australia - 15 June 2006
A comprehensive review of the increasing trend towards Australian corporate class actions.
New prudential standard affecting reinsurance management - 23 February 2006
APRA (Australian Prudential Regulation Authority) has now released three new prudential standards and associated prudential practice guides in connection with its Stage 2 reform program. These standards relate to risk and reinsurance management and to audit and actuarial reporting and valuation. They will take effect from 1 October 2006. This alert summarises the key changes to reinsurance management to be implemented by the new prudential standard GPS 230 Reinsurance Management.
Corporate governance alert - 8 April 2005
Yesterday the High Court handed down its decisions in the Rich and Silbermann and Wilkie cases addressing the issue of advancement of defence costs under D&O policies. Following this decision directors and officers should gain greater confidence in their ability to rely on this clause if worded correctly. More...
Insurance alert - 24 December 2004
Significant changes will be made with effect from 1 January to the regulatory regime in Western Australia as it applies to workers' compensation. In this alert we deal with changes to the workers' compensation regime that are most likely to effect your business. More...
Insurance alert - 23 December 2004
Significant changes will be made with effect from 1 January to the regulatory regime in Western Australia as it applies to safety both for mine sites and in the general work environment. In this alert we deal with changes to the work place safety regime that are most likely to effect your business. More...
International arbitration law update - 1 December 2004
This edition features articles on the chess clock procedure for arbitration and an overview of a recent Australian Court decision supporting the enforcement of a Singaporean arbitral award. Also read about Mallesons' recent award for "Arbitration Law Firm of the Year" 2004 by Asian Legal Business, domain name disputes and interpretation arbitration agreements in Hong Kong. More...
“Insurance is a particular area of strength…”
Asia Pacific Legal 500 2006-2007