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Insurance (prudential standard) determination No. 1 of 2018
Prudential StandardPrudential Standard
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Prudential Standard
- This Prudential Standard, made under section 32 of the Insurance Act 1973 (the Act), applies to all general insurers authorised under the Act.
- A transfer or amalgamation of insurance business can occur only under a scheme confirmed by the Federal Court (unless it is undertaken in response to a direction from the Australian Prudential Regulation Authority (APRA)[1]). This Prudential Standard sets out specific requirements in relation to documentation, notification, public inspection and an application to the Court.
- In addition, any transfer or amalgamation of insurance business is subject to the provisions of the Insurance Acquisitions and Takeovers Act 1991 (IATA). The IATA requires compulsory notification of proposals involving the acquisition of any or all of the interests, rights or benefits of an insurer under contracts of insurance where that transfer amounts to 15% or more of the transferring insurer’s premiums or outstanding claims liabilities.