Revocation of authorisation to carry on insurance business 2024 – Aioi Nissay Dowa Insurance Company Limited
Insurance Act 1973
To: Aioi Nissay Dowa Insurance Company Limited ABN 39 096 302 466 (‘the general insurer’)
Since:
(a) the general insurer has held an authorisation under section 12 of the Insurance Act 1973 (‘the Act’) to carry on insurance business in Australia since 1 July 2002 (‘the authorisation’);
(b) the general insurer has asked APRA to revoke the authorisation; and
(c) APRA is satisfied the general insurer has no liabilities in respect of insurance business carried on by it in Australia and revoking the authorisation would not be contrary to the national interest,
I Sean Carmody, a delegate of APRA, under subsection 16(1) of the Act, revoke the general insurer’s authorisation.
The revocation takes effect on the date it is made. Dated: 15 March 2024
Sean Carmody Executive Director Insurance Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority.
insurance business has the meaning given in subsection 3(1) of the Act.
Page 1 of 1
Overview
The Revocation of Authorisation to Carry on Insurance Business 2024, issued under the Insurance Act 1973, pertains to Aioi Nissay Dowa Insurance Company Limited, an entity that had been authorised to conduct insurance business in Australia since July 1, 2002. This instrument was enacted to respond to the specific request of the insurer to have its authorisation revoked. The Australian Prudential Regulation Authority (APRA), acting through a delegate, Sean Carmody, determined that the revocation would not be detrimental to the national interest, as the insurer had no outstanding liabilities in relation to its insurance operations in Australia. The revocation took immediate effect upon issuance of the instrument on March 15, 2024.
The Insurance Act 1973 provides the legislative framework for the regulation of insurance activities in Australia. It enables the authorisation of insurers to operate within the country and allows for the revocation of such authorisations under certain conditions. This revocation specifically aims to ensure the orderly cessation of the insurer's operations while safeguarding the interests of policyholders and the stability of the insurance market. The instrument demonstrates APRA's role in overseeing the compliance and financial integrity of insurance companies in Australia, ensuring that any changes in the authorisation status of insurers are in the best interest of the national economy and the public.
Scope and Application
The revocation of authorisation to carry on insurance business under the Insurance Act 1973 pertains to Aioi Nissay Dowa Insurance Company Limited, a general insurer with the Australian Business Number (ABN) 39 096 302 466. The authorisation, held since 1 July 2002, allowed the company to engage in insurance business in Australia. The decision to revoke this authorisation was made by Sean Carmody, a delegate of the Australian Prudential Regulation Authority (APRA), in accordance with subsection 16(1) of the Act. APRA determined that the revocation would not result in any liabilities for the company in relation to its insurance business in Australia and that it would not be contrary to the national interest. The revocation took immediate effect on the date it was made, which was 15 March 2024. This action aligns with the provisions of the Insurance Act 1973 and the specified interpretation of 'insurance business' as defined in subsection 3(1) of the Act.
Key Provisions
The primary operative sections of the revocation instrument include the authorisation under section 12 of the Insurance Act 1973, which allowed Aioi Nissay Dowa Insurance Company Limited to carry on insurance business in Australia. The instrument also references the general insurer’s request for revocation of this authorisation and APRA’s decision to approve the revocation under subsection 16(1) of the Act. This revocation is based on APRA’s satisfaction that the general insurer has no liabilities from its insurance business in Australia and that the revocation would not be contrary to the national interest.
The Act imposes specific obligations on the general insurer, primarily ensuring that it operates in compliance with the regulatory requirements set by APRA. The general insurer must maintain adequate financial stability and solvency, and it must notify APRA of any changes in its operations or financial status. Additionally, the insurer is required to meet all statutory obligations related to the insurance business it carries on, including consumer protection and claims handling.
In terms of civil or criminal consequences for breaches of the Act, the legislation does not explicitly detail the penalties within the revocation instrument itself. However, general provisions of the Act allow for sanctions including fines, cancellation of authorisation, and in severe cases, criminal charges against individuals responsible for the breach. The specific maximum penalties would depend on the nature and severity of the breach, as outlined in other sections of the Insurance Act 1973. The revocation of the authorisation itself serves as a significant consequence, effectively prohibiting the general insurer from continuing its insurance business in Australia.