Notice varying conditions on Authorisation to carry on insurance business - Boral Insurance Pty Limited

Administered by Department of the Treasury

Legislation au C2013G01169 In force Gazette

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Notice varying conditions on Authorisation to carry on insurance business

 

Insurance Act 1973

 

 

TO: Boral Insurance Pty Limited ABN 67 000 736 318  (the general insurer)

Level 39, 50 Bridge Street Sydney NSW 2000

 

SINCE

 

  1. APRA issued to the general insurer an Authorisation to carry on insurance business in Australia under subsection 12(1) of the Insurance Act 1973 (the Act), on 24  June 2002  (the Authorisation); and
  2. the Authorisation is subject to conditions,

 

I, Brandon Kong Leong Khoo, a delegate of APRA:

(i)                 under paragraph 13(1)(b) of the Act, VARY those conditions imposed on the

Authorisation in the manner specified in the attached Schedule; and

(ii)               under paragraph 13(1)(a) of the Act, IMPOSE those conditions on the Authorisation, specified in the attached Schedule.

 

When this Notice takes effect, the conditions which apply to the Authorisation are set out in the attached Schedule of consolidated conditions.

 

 

 

Dated: 29 July 2013

 

[Signed]

 

 

 

Brandon Kong Leong Khoo Executive General Manager Specialised Institutions Division

Interpretation Document ID: 209451

In this Notice

 

APRA means the Australian Prudential Regulation Authority. insurance business has the meaning given in section 3 of the Act. prudential standard has the meaning given in section 3 of the Act.

Note 1


Under subsection 13(1) of the Act, APRA may, at any time, by written notice to the general insurer

impose conditions or additional conditions or vary or revoke conditions imposed on the insurer's authorisation

under section 12 of the Act. The conditions must relate to prudential matters.

 

Note 2


Under subsection 13(2) of the Act, a condition may be expressed to have effect despite anything in

the prudential standards.

 

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 that the action has

been taken is published in the Gazette.

 

Note 4


Under subsection 14(1) of the Act, a general insurer commits an offence if:

(a)  the insurer does an act or fails to do an act; and

(b)  doing the act or failing to do the act results in a contravention of a condition of the insurer's authorisation under section 12 of the Act; and

(c)  there is no determination in force under subsection 7(1) of the Act, that subsection 14(1) of the Act does not apply to the insurer.

The penalty is 300 penalty units. Under subsection 14(1A) of the Act, where an individual commits an offence against subsection 14(1) of the Act, because of Part 2.4 of the Criminal Code or commits an offence under Part

2.4 of the Criminal Code in relation to an offence against subsection 14(1) of the Act, the individual is punishable, on conviction, by a penalty not exceeding 60 penalty units. Under subsection 14(2) of the Act, an offence against section 14 of the Act, is an offence of strict liability.

 

Note 5


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 Appeals Act 1975, apply to the Administrative Appeals Tribunal for review of the reconsidered decision.

The address where written notice may be given to APRA is level 26, 400 George Street Sydney NSW 2000 .

Schedule - the conditions which are being varied

 

The existing condition(s) which are to be varied:

 

 

3. The general insurer shall at all times maintain its capital base in excess of: (a) $2,000,000; or

(b) 1.2 times the Minimum Capital Requirement calculated in accordance with GPS 110

 

 

whichever is the greater, and in this regard, the general insurer shall not be obliged to comply with paragraph 16 of Prudential Standard GPS 110 made under section 32 of the Act.

 

 

The condition(s) as varied are:

 

 

3.                      The general insurer shall at all times maintain its capital base in excess of: (a) $2,000,000; or

(b) 1.2 times the Minimum Capital Requirement calculated in accordance with

Prudential Standard GPS 110 Capital Adequacy,

 

whichever is the greater.

 

 

 

4.           The general insurer is not required to comply with the prudential requirements in paragraphs 42-63 of Prudential Standards CPS 510 Governance.

 

5.           Until 30 June 2015, the general insurer need not comply with the prudential requirements of paragraph 34 of Prudential Standard GPS 320 Actuarial and Related Matters but must by 30 September 2015 submit an Insurance Liability Valuation Report (ILVR) for the year ending 30 June 2015. A report on the review of the run-off plan is to be submitted along with the ILVR. In addition:

 

(a)   the general insurer’s Board will provide APRA with an annual declaration stating that there has been no material change in the circumstances since the 2009 valuation in the general insurer’s annual submission; and

 

(b)       should a claim be notified, an actuarial report will be required to be prepared by the Appointed Actuary and a copy provided to APRA as soon as practicable.

 

6.             The general insurer need not comply with the requirement to prepare a peer review of the ILVR under paragraph 70 of GPS 320, unless directly instructed by APRA to do so.

 

 

  1.          The general insurer may only provide insurance to related bodies corporate as defined in section 50 of the Corporations Act 2001.

 

2.            The general insurer may only conduct insurance business in Australia for the sole purpose of discharging liabilities that arose under policies entered into prior to 1 July 2002.

 

3.            The general insurer shall at all times maintain its capital base in excess of: (a) $2,000,000; or

(b) 1.2 times the Minimum Capital Requirement calculated in accordance with

Prudential Standard GPS 110 Capital Adequacy,

 

whichever is the greater.

 

4.           The general insurer is not required to comply with the prudential requirements in paragraphs 42-63 of Prudential Standards CPS 510 Governance.

 

5.           Until 30 June 2015, the general insurer need not comply with the requirements of paragraph 34 of Prudential Standard GPS 320 Actuarial and Related Matters but must by 30 September 2015 submit an Insurance Liability Valuation Report (ILVR) for the year ending 30 June 2015. A report on the review of the run-off plan is to be submitted along with the ILVR. In addition:

 

(a)   the general insurer’s Board will provide APRA with an annual declaration stating that there has been no material change in the circumstances since the 2009 valuation in the general insurer’s annual submission; and

 

(b)       should a claim be notified, an actuarial report will be required to be prepared by the Appointed Actuary and a copy provided to APRA as soon as practicable.

 

6.             The general insurer need not comply with the requirement to prepare a peer review of the ILVR under paragraph 70 of GPS 320, unless directly instructed by APRA to do so.

Overview

The Insurance Act 1973 was enacted to regulate the insurance industry in Australia, ensuring that insurers operate with sufficient capital and comply with prudential standards to protect policyholders. The Act provides the Australian Prudential Regulation Authority (APRA) with the power to issue authorisations to carry on insurance business, subject to conditions that must be adhered to by the insurers. This legislation fills the need for regulatory oversight and standardisation within the insurance sector, thereby maintaining market stability and consumer confidence. APRA, acting as a delegate of the Commonwealth, issued a notice on 29 July 2013, varying the conditions imposed on Boral Insurance Pty Limited’s authorisation to carry on insurance business in Australia. The policy objective of this notice was to adjust the prudential conditions to align with the insurer’s current operational context while ensuring that the insurer maintains adequate capital and complies with necessary governance standards.

Scope and Application

The Insurance Act 1973 applies to general insurers authorised to carry on insurance business in Australia, including Boral Insurance Pty Limited, which holds an authorisation issued by the Australian Prudential Regulation Authority (APRA). This Act governs the conditions under which such authorisations are granted, modified, or revoked, ensuring that general insurers maintain adequate capital and comply with prudential standards to safeguard policyholders' interests. The Act empowers APRA to impose, vary, or revoke conditions on authorisations, and these decisions are subject to review under the Administrative Appeals Act 1975. The scope of the Act is national, applying to all general insurers operating within Australia, and it includes provisions for strict liability offences and penalties for non-compliance. Exclusions and specific exemptions from certain prudential standards are detailed in the attached Schedule, which outlines the varied conditions applicable to Boral Insurance Pty Limited’s authorisation.

Key Provisions

The key provisions of this notice vary the conditions imposed on Boral Insurance Pty Limited's Authorisation to carry on insurance business in Australia, issued by the Australian Prudential Regulation Authority (APRA) under the Insurance Act 1973. Specifically, the notice modifies the capital adequacy requirements, alters compliance obligations concerning prudential standards, and adjusts conditions related to insurance liability valuation reporting. The varied conditions are detailed in the attached Schedule, which outlines the specific changes made to the original conditions set forth in the Authorisation granted on 24 June 2002. The notice imposes several obligations on Boral Insurance Pty Limited. Firstly, the insurer must maintain its capital base above a specified threshold, which is the greater of $2,000,000 or 1.2 times the Minimum Capital Requirement as calculated under Prudential Standard GPS 110 Capital Adequacy. Secondly, Boral Insurance is exempt from certain governance and actuarial requirements unless otherwise directed by APRA. For example, until 30 June 2015, the insurer need not comply with the requirements of paragraph 34 of Prudential Standard GPS 320 Actuarial and Related Matters, but must submit an Insurance Liability Valuation Report (ILVR) for the year ending 30 June 2015 by 30 September 2015. Additionally, the insurer's Board must annually declare that there have been no material changes since the 2009 valuation. If a claim is notified, an actuarial report must be prepared and provided to APRA promptly. Any failure by Boral Insurance Pty Limited to comply with the varied conditions of the Authorisation constitutes an offence under the Insurance Act 1973. The Act specifies that an insurer commits an offence if they perform or omit an action that results in a contravention of the conditions of their authorisation, unless there is a determination in force exempting the insurer from such provisions. The penalty for an offence under the Act is 300 penalty units. If an individual commits such an offence, they are subject to a penalty not exceeding 60 penalty units, in accordance with Part 2.4 of the Criminal Code. These offences are of strict liability, meaning intent or negligence is not required to be proven for a conviction. Under the Act, any decision by APRA to impose, vary, or revoke conditions on an insurer's authorisation is subject to review. If Boral Insurance Pty Limited is dissatisfied with a decision by APRA, they may request reconsideration within 21 days of becoming aware of the decision or within any extended period allowed by APRA. Should the reconsideration not resolve the dissatisfaction, Boral Insurance may apply to the Administrative Appeals Tribunal for further review, subject to the provisions of the Administrative Appeals Act 1975.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.