Peter Dutton
The Federal Government has moved to tighten the rules relating to foreign insurers entering the Australian market with the introduction of a new reform package.
Assistant Treasurer Peter Dutton said the new regulatory package was designed to address the risk to Australian consumers and businesses of unauthorised direct offshore foreign insurers that are unscrupulous or that fail.
He said the new package would be underpinned by changes to the regulatory framework administered by the Australian Prudential Regulation Authority with clear recognition being given to different types of insurer.
“Tailored prudential standards will apply, so that categories of insurers posing a lower risk will face a reduced regulatory burden,” Dutton said.
The minister also announced that the Government would be subjecting discretionary mutual funds to a rigorous compulsory data collection regime to better understand their use and operation and would be requiring Australian Financial Services Licence holdings to deal only in authorised general insurance products, with limited exceptions.
