Notice varying conditions on an authorisation to carry on insurance business in Australia – BHP Marine & General Insurances Pty Ltd 2025
Insurance Act 1973
To: BHP Marine & General Insurances Pty Ltd ACN 004 958 178 (the general insurer) SINCE:
- APRA issued to the general insurer an Authorisation to carry on insurance business in Australia under subsection 12(1) of the Act (the Authorisation); and
- The Authorisation is subject to conditions,
I, Jane Magill, a delegate of APRA, under paragraph 13(1)(b) of the Act, vary the conditions imposed on the Authorisation in the manner specified in Schedule 1.
When this Notice commences, the conditions which apply to the Authorisation are set out in Schedule 2.
This Notice commences on the date it is made. Dated: 1 July 2025
Jane Magill Executive Director
General Insurance and Banking Division
Interpretation
In this Notice:
Act means the Insurance Act 1973.
APRA means the Australian Prudential Regulation Authority.
insurance business has the meaning given in subsection 3(1) of the Act.
Note 1 Under subsection 13(1) of the Act, APRA may, at any time, by written notice to a general insurer, impose conditions or additional conditions or vary or revoke conditions imposed on the insurer’s authorisation.
Note 2 Under section 13 of the Act, APRA may impose conditions or additional conditions on a general insurer’s authorisation provided the conditions relate to prudential matters.
Note 3 Under subsection 13(4) of the Act, if APRA imposes, varies or revokes the conditions on a general insurer’s authorisation, APRA must give written notice to the insurer and ensure that notice of the action is published in the Gazette.
Note 4 Under subsection 13(6) of the Act, a decision to impose conditions, or additional conditions, or to vary the conditions on the Authorisation are reviewable decisions to which Part VI of the Act applies. If you are dissatisfied with a reviewable decision, you may seek reconsideration of the decision by APRA in accordance with subsection 63(2) of the Act. The request for reconsideration must be in writing, must state the reasons for the request and must be given to APRA within 21 days after the decision first comes to your notice or within such further period as APRA allows. If
dissatisfied with APRA’s reconsidered decision confirming or varying the first decision, you may, subject to the Administrative Review Tribunal Act 2024, apply to the Administrative Review Tribunal (ART) for review of the reconsidered decision.
The address where written notice may be given to APRA is Level 12, 1 Martin Place Sydney NSW 2000 and by email to the relevant APRA Supervisor.
Schedule 1 – the condition on Authorisation which is to be varied
The existing condition which is to be varied:
1. BHP Billiton Marine & General Insurances Pty Ltd is authorised (as an insurer) to enter into contracts of insurance where BHP Billiton and/or subsidiary and/or associated companies are named as an insured party in the policy.
The condition as varied:
- The general insurer is authorised (as an insurer) to only:
- enter into contracts of insurance where the general insurer and/or subsidiary and /or associated companies are named as an insured party in the policy; and
- provide insurance pursuant to the Insurance Novation Deed between Westminer Insurance Pte Ltd UEN 198802809N, the general insurer and BHP Nickel West Pty Ltd ACN 004 184 598 executed on 27 September 2023.
Schedule 2 – the consolidated condition
- The general insurer is authorised (as an insurer) to only:
- enter into contracts of insurance where the general insurer and/or subsidiary and /or associated companies are named as an insured party in the policy; and
- provide insurance pursuant to the Insurance Novation Deed between Westminer Insurance Pte Ltd UEN 198802809N, the general insurer and BHP Nickel West Pty Ltd ACN 004 184 598 executed on 27 September 2023.
Overview
The Insurance Act 1973, enacted by the Commonwealth of Australia, addresses the regulation of the insurance industry to ensure the protection of policyholders and the stability of the financial system. This Act provides the Australian Prudential Regulation Authority (APRA) with the authority to regulate insurance businesses, including the ability to impose, vary, or revoke conditions on authorisations granted to insurers. The policy objective of the Act is to maintain the financial soundness of authorised insurance companies and to safeguard the interests of policyholders. This legislation was issued by APRA, which acts as the delegate of the Commonwealth under the Act, to specifically vary the conditions on the authorisation to carry on insurance business in Australia for BHP Marine & General Insurances Pty Ltd. The purpose of this notice is to modify the existing authorisation conditions to align with the terms of a recent Insurance Novation Deed, thereby ensuring the insurer's operations remain compliant with the prudential standards set forth in the Act.
Scope and Application
The Insurance Act 1973 applies to the authorisation of general insurers such as BHP Marine & General Insurances Pty Ltd, allowing the Australian Prudential Regulation Authority (APRA) to impose, vary, or revoke conditions on their authorisation to carry on insurance business in Australia. Specifically, this Act empowers APRA to regulate the prudential aspects of insurance businesses, ensuring financial stability and consumer protection. The conditions on the authorisation of BHP Marine & General Insurances Pty Ltd have been varied to restrict the insurer's ability to enter into contracts of insurance where only the insurer or its subsidiaries and associated companies can be named as insured parties, and to limit the provision of insurance to that pursuant to a specific Insurance Novation Deed executed with Westminer Insurance Pte Ltd and BHP Nickel West Pty Ltd. These variations are effective from the date of the notice and are applicable nationally as per the jurisdictional reach of the Act. APRA's decisions regarding the conditions on authorisations are subject to review under Part VI of the Act, with the option for reconsideration by APRA and subsequent review by the Administrative Review Tribunal if necessary.
Key Provisions
The Notice issued by Jane Magill, as a delegate of the Australian Prudential Regulation Authority (APRA), varies the conditions on BHP Marine & General Insurances Pty Ltd's (BHP Marine) Authorisation to carry on insurance business in Australia. This variation is made under paragraph 13(1)(b) of the Insurance Act 1973 (Act). The variation alters the conditions under which BHP Marine can enter into insurance contracts, limiting them to instances where BHP Marine or its subsidiaries or associated companies are the insured parties. Additionally, it restricts the insurer to providing insurance in accordance with a specific Insurance Novation Deed dated 27 September 2023, between Westminer Insurance Pte Ltd, BHP Marine, and BHP Nickel West Pty Ltd.
BHP Marine, as a general insurer authorised by APRA, must comply with these varied conditions. This includes ensuring that any insurance contracts they enter into are limited to the specified parties and adhere to the terms of the Insurance Novation Deed. The insurer must also maintain records and documentation that demonstrate compliance with the new conditions. This obligation extends to providing APRA with any required reports or information upon request, ensuring transparency and adherence to regulatory standards.
Failure to comply with the conditions set forth in the Notice may result in significant consequences. Under the Act, APRA has the authority to impose conditions or vary conditions on an insurer’s authorisation to address non-compliance. If BHP Marine fails to adhere to the new conditions, APRA may take further regulatory actions, including imposing additional penalties, further varying or revoking the authorisation, or initiating legal proceedings. The potential penalties for non-compliance could include substantial fines, restrictions on the insurer’s operations, or, in severe cases, revocation of the authorisation, thereby preventing BHP Marine from continuing to carry on insurance business in Australia.