Skip Ribbon Commands
Skip to main content
 
ARCHIVED CONTENT

Information on unauthorised foreign insurers (formerly DOFIs)

Any person or company wishing to undertake insurance business (as defined in the Insurance Act 1973) must obtain an authorisation from APRA to do so under the Insurance Act 1973. For APRA’s authorisation guidelines for general insurers, click here.
 
From 1 July 2008, the definition of insurance business in the Act clarifies that, with certain exceptions, all companies conducting business either directly or through the actions of another (for example, an insurance agent or broker) must be authorised by APRA under the Act, regardless of whether or not the person or company holds an authorisation in an overseas jurisdiction.
 
General insurers authorised by APRA under the Insurance Act 1973 to undertake new or renewal business in Australia are listed on Register of Authorised Insurers on this website.
 
The Insurance Act 1973 also provides for a limited exemption to enable insurance business that cannot be appropriately placed in Australia to be provided by an unauthorised foreign insurer (UFIs).
 
‘Unauthorised foreign insurer’ is a term that was introduced in 2008 to make it clear that these insurers are not authorised as general insurers and replaces the previous term, ‘Direct Offshore Foreign Insurers’ (DOFIs).
 
The types of insurance business that can be provided by an UFI are insurance contracts for:
  • atypical risks;
  • high-value insureds; and
  • other risks that cannot reasonably be placed in Australia.
For a link to the Insurance Amendment Regulations 2008 regarding the exemption arrangements for UFIs, click here.
 
Reporting in relation to UFIs
 
General insurance intermediaries are required under the Corporations Amendment Regulations 2009 (No. 11) to provide data to APRA about their dealings in general insurance business, particularly their dealings with UFIs. For information about the reporting requirements for general insurance intermediaries, click here.
 

Relevant legislation

Financial Sector Legislation Amendment (Discretionary Mutual Funds and Direct Offshore Foreign Insurers) Act 2007

Treasury Consultation Papers

 

Media Releases