Overview

The Revocation of authorisation to carry on insurance business 2023, enacted by the Insurance Act 1973, addresses the need to formally revoke the authorisation of a general insurer to carry on insurance business in Australia under specific circumstances. This instrument was introduced to provide a legal framework for the Australian Prudential Regulation Authority (APRA) to revoke the authorisation of Allianz Australia General Insurance Pty Limited, an entity authorised under section 12 of the Act. The policy objective is to ensure that the revocation process is transparent and conducted in a manner that safeguards the national interest while addressing the requests of the general insurer. The revocation, effective from its date, confirms that the insurer has no outstanding liabilities in respect of its insurance business and that such action does not contravene national interests. The instrument was issued by Sean Carmody, acting as a delegate of APRA, under the authority granted by subsection 16(1) of the Act. This formal revocation follows the general insurer's request and APRA's determination that the revocation would not be detrimental to the national interest. By revoking the authorisation, the Act facilitates orderly cessation of the insurer's operations, ensuring compliance with legislative requirements and maintaining regulatory standards within the Australian insurance sector.

Scope and Application

The Revocation of Authorisation to Carry on Insurance Business 2023 pertains to the specific case of Allianz Australia General Insurance Pty Limited, authorised under section 12 of the Insurance Act 1973 to conduct insurance business in Australia. The revocation of this authorisation applies to the entity identified by the Australian Business Number (ABN) 99 003 719 319, and the instrument is effective from the date of its issuance. This action follows the general insurer's request to APRA and APRA's determination that the revocation would not result in liabilities for the insurer and would not be contrary to the national interest. The instrument is a direct application of the Insurance Act 1973, with specific reference to section 16(1), and is executed by Sean Carmody, a delegate of APRA. The instrument operates within the Commonwealth jurisdiction and applies directly to the specified entity, with no broader application to other entities or industries unless similarly authorised and subsequently subject to revocation under the same statutory framework. Any further extension or restriction of the application of this revocation would be subject to any subordinate instruments issued under the authority of the Act.

Key Provisions

The key operative sections of the Revocation of Authorisation to Carry on Insurance Business 2023 (Gazette) focus on the revocation of the authorisation granted to Allianz Australia General Insurance Pty Limited under the Insurance Act 1973. Section 12 of the Act authorised the insurer to carry on insurance business in Australia, and the revocation process is detailed under section 16(1). The revocation is executed based on three conditions: the insurer’s request, APRA’s confirmation that there are no liabilities from the insurer’s insurance business, and the assurance that revoking the authorisation would not be contrary to the national interest. The Act imposes certain obligations on the parties involved. Allianz Australia General Insurance Pty Limited must request the revocation of its authorisation, and APRA must ensure that the insurer has no outstanding liabilities before proceeding with the revocation. Additionally, APRA must confirm that revoking the authorisation would not harm the national interest. The revocation is executed by Sean Carmody, a delegate of APRA, who is authorised under subsection 16(1) of the Act to carry out this action. There are no specific offences, penalties, or consequences mentioned in the revocation instrument itself. However, the revocation of an insurance authorisation under the Insurance Act 1973 may have broader implications. Typically, if a general insurer operates without valid authorisation, it may face civil or criminal penalties, including fines and potential imprisonment. The exact penalties would depend on the specific circumstances and the provisions of the broader Insurance Act 1973. The revocation process ensures that the insurer complies with legal requirements before its authorisation is terminated.