Revocation of authorisation to carry on insurance business 2025 – SiriusPoint International Forsakringsaktiebolag (publ)

Overview

The Revocation of Authorisation to Carry on Insurance Business 2025 – SiriusPoint International Forsakringsaktiebolag (publ) was enacted in 2025 to address the specific situation where SiriusPoint International Forsakringsaktiebolag (publ), an authorised general insurer under the Insurance Act 1973, requested the revocation of its authorisation to operate in Australia. The Australian Prudential Regulation Authority (APRA) is responsible for overseeing the revocation process, and in this instance, APRA determined that revoking the authorisation would not result in any liabilities for the insurer and would not be contrary to the national interest. The legislation, which was enacted by a delegate of APRA, aims to ensure that the revocation of the authorisation is carried out in a manner that is consistent with the provisions of the Insurance Act 1973. The revocation took effect on the day it was issued, signifying the conclusion of the insurer's operations in Australia. The Insurance Act 1973, enacted by the Australian Parliament, established a comprehensive regulatory framework for the insurance industry in Australia. The Act was introduced to address the need for effective regulation and oversight of insurance businesses to protect policyholders and maintain the stability of the insurance market. The policy objective of the Act is to ensure that insurance businesses operate in a manner that is fair, responsible, and in the best interests of policyholders, while also promoting competition and innovation within the industry. The revocation of authorisation under the Act is one mechanism through which the regulatory authority can manage the entry and exit of insurance businesses in the Australian market, ensuring that the regulatory framework remains effective and responsive to changing circumstances.

Scope and Application

The Revocation of authorisation to carry on insurance business 2025 applies specifically to SiriusPoint International Forsakringsaktiebolag (publ), an entity with an Australian Registration Business Number 656 190 831, which has been granted authorisation under section 12 of the Insurance Act 1973 to conduct insurance business within Australia. This revocation pertains to the general insurance activities that the entity has been authorised to conduct as defined in subsection 3(1) of the Act. The revocation is executed by Jane Magill, acting as a delegate of the Australian Prudential Regulation Authority (APRA), following the entity's request to withdraw its authorisation and APRA’s confirmation that the entity has no outstanding liabilities from its insurance operations in Australia and that the revocation does not conflict with national interests. This revocation, effective from the date of its issuance, signifies the termination of SiriusPoint International’s legal capacity to operate as an authorised general insurer in Australia, impacting the scope of their business activities and obligations under the Act.

Key Provisions

The legislation in question is a revocation notice issued under subsection 16(1) of the Insurance Act 1973 (Cth) concerning SiriusPoint International Forsakringsaktiebolag (publ). Section 12 of the Act originally granted SiriusPoint International (ARBN 656 190 831) the authorisation to carry on insurance business in Australia. The revocation of this authorisation is effective from the date it is issued, which is 5 February 2025. This revocation is based on the insurer’s own request to the Australian Prudential Regulation Authority (APRA) and APRA’s determination that the revocation does not pose a threat to the national interest and that the insurer has no outstanding liabilities in relation to its insurance business conducted in Australia. The Act imposes certain obligations and requirements on SiriusPoint International, including compliance with all relevant insurance laws and regulations, maintaining adequate capital and financial resources, and ensuring that its operations do not endanger the interests of policyholders or the stability of the financial system. By revoking the authorisation, SiriusPoint International is no longer permitted to engage in any insurance business in Australia, and it must cease all such activities immediately upon the revocation. The insurer must also ensure that all its obligations and liabilities are settled and that it properly winds up any existing business operations in accordance with the law. Failure to comply with the requirements of the Insurance Act 1973 can lead to various legal consequences. The Act provides for both civil and criminal penalties for breaches. For instance, section 309 of the Act allows for fines of up to $1.2 million for individuals and $6 million for corporations for contravening the Act. Additionally, section 312 of the Act allows for imprisonment for up to five years for individuals who knowingly contravene certain sections of the Act. These penalties underscore the seriousness with which the law treats non-compliance and aim to ensure that insurers maintain high standards of conduct and responsibility.