Notice of general insurer name change - Pacific International Insurance Limited to Pacific International Insurance Pty Limited

Overview

The Insurance Act 1973, enacted by the Commonwealth Parliament, was introduced to establish a regulatory framework for the insurance industry in Australia, ensuring that insurance products are provided by authorised entities and that consumer protection is upheld. One of its key functions is to provide the Australian Prudential Regulation Authority (APRA) with the authority to supervise and regulate general insurers, including the oversight of significant changes such as name changes. This legislative framework aims to maintain the stability and integrity of the insurance market and protect policyholders. The notice regarding the name change of Pacific International Insurance Limited to Pacific International Insurance Pty Limited, published under the authority of Vincent Lee, a delegate of APRA, reflects the Act's role in formalising and publicising such changes to ensure transparency and continuity in the regulation of general insurers.

Scope and Application

The Insurance Act 1973 applies to general insurers, defined under section 11 of the Act, and other related entities authorised by the Australian Prudential Regulation Authority (APRA). This legislation governs the conduct and operations of these entities within Australia, encompassing various aspects such as licensing, compliance, and financial reporting. The Act applies across the Commonwealth, and its provisions are enforced nationally, ensuring a consistent regulatory environment. Notably, the Act allows for the modification of a general insurer's name, as evidenced by the notification regarding Pacific International Insurance Limited changing its name to Pacific International Insurance Pty Limited effective from 1 August 2014. This change was authorised under the Act by Vincent Lee, a delegate of APRA, following the requirements of subsection 29(4). The Act’s scope includes the regulation of the insurance industry to protect policyholders and maintain market stability, with specific exclusions or exemptions not detailed in this particular notice. The Act may be further defined or extended through subordinate instruments, which provide additional regulatory details and operational guidelines.

Key Provisions

The Notice issued under subsection 29(3) of the Insurance Act 1973 informs that the general insurer, Pacific International Insurance Limited, has legally changed its name to Pacific International Insurance Pty Limited effective from 1 August 2014. This change is made official with the publication of the Notice, which indicates that the insurer's authorisation under section 12 of the Act is now effective as if it had been granted under its new name (subsection 29(4)). This statutory notification ensures that the legal entity maintains its regulatory standing and recognition within the Australian insurance market despite the name change. The obligations imposed on Pacific International Insurance Pty Limited, formerly Pacific International Insurance Limited, include compliance with all existing statutory and regulatory requirements applicable to general insurers. This encompasses maintaining adequate capital requirements, ensuring the solvency of the company, and adhering to the terms of its authorisation under the Act. The company must also keep up-to-date records and submit necessary reports and returns to the Australian Prudential Regulation Authority (APRA) to demonstrate ongoing compliance with insurance regulations. Under the Insurance Act 1973, breaches of the legislative requirements or failure to comply with the obligations can result in significant legal consequences. The Act includes provisions for both civil and criminal penalties. For instance, civil penalties can be imposed for violations such as failing to meet capital requirements or submitting false information to APRA. Such penalties can include substantial fines, which may vary depending on the severity and frequency of the breach. Criminal penalties might also apply, where the Act provides for fines or imprisonment, particularly in cases of fraudulent or deliberate non-compliance. The exact penalties are detailed in the Act and can be enforced by the courts, ensuring that the integrity and stability of the insurance market are upheld.