We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
APRA highlights that such arrangements, often referred to as binder holder agreements, enable third-party intermediaries to facilitate insurance policy issuances on behalf of the principal insurer.
This enforcement represents a pivotal regulatory move since Suzanne Smith, an influential figure within APRA, signaled the sector's forthcoming intensified focus on the administration of outsourced functions to intermediaries like underwriting agencies and brokers.
Detailed evaluations unearthed critical lapse in governance and risk management associated with the insurer's binder operations. The scrutiny brought to light several concerns, including deficiencies in accountability and the sufficiency of its resource allocation strategies.
According to Ms. Smith, even when the underwriting processes are entrusted to external entities, the onus of accountability centers unmistakably on the insurers themselves. She asserted, “Outsourcing can help with solutions for hard-to-place risks or reduce operational costs for insurers, but it is crucial to understand that the overall risk stays with the insurer, as insurance risk and accountability are the reason why insurers hold licences in the first place.”
Further, Ms. Smith reiterates the regulatory body's stance on enforcing compliance, stating that APRA will persist in taking measures deemed necessary when insurers fall short of the expected standards.
Following this regulatory directive, Pacific International has recognized the assessment's conclusions and is underway with a plan outlining corrective measures. Despite this initiative, the regulator affirms that more endeavors are required to cement these changes within the company’s operational practices and to assure APRA of effective rectification.
Originating from the briefings by insuranceNEWS.com.au, Pacific International’s outreach for commentary remains pending.
The statistics indicate that Pacific International had secured a prescribed capital amounting to $29 million by June 30 of the preceding year. The period also saw the firm observing a gross earned premium of $229 million and gross incurred claims valued at $85 million, culminating in an underwriting profit of $24 million.
Renowned on an international scale, Pacific International affiliates itself with South Africa's Badger International—a conglomerate with extensive interests in the insurance domain.
Published:Friday, 8th Nov 2024
Source: Paige Estritori
| Insurers Face Intense Scrutiny Over Quake Claim Rejections 21 Nov 2024: Paige Estritori In recent months, Muswellbrook, a town in New South Wales, has experienced a series of earthquakes that have left residents grappling with both physical destruction and emotional distress. Criticism is mounting against insurers as more than 600 claims have emerged, following these seismic events, yet many remain unresolved or denied. - read more |
| AI Regulations: A Web of Complications 20 Nov 2024: Paige Estritori The Insurance Council of Australia (ICA) has raised concerns about the potential fallout from a fragmented regulatory approach to artificial intelligence and automated decision-making in the industry. There is fear that this patchwork of reforms could result in conflicting requirements, heavier compliance burdens, and increased industry confusion. - read more |
| APRA Survey Reveals Impact of Climate Change on Insurance Industry Practices 19 Nov 2024: Paige Estritori A recent analysis by the Australian Prudential Regulation Authority (APRA) reveals that over 90% of general insurers and reinsurers anticipate climate change will influence their underwriting procedures, posing new challenges to the industry. - read more |
| Fraudulent Claims Lead to Complete Denial of Compensation 18 Nov 2024: Paige Estritori In a remarkable case highlighting the severe consequences of insurance fraud, an individual's attempt to inflate a theft insurance claim has resulted in the total denial of compensation. Despite a significant portion of the claim being genuine, fraudulent actions negated any potential payout. - read more |
| Soaring Insurance Premiums Amid Changing Climate 14 Nov 2024: Paige Estritori As climate change persists, the impact of severe weather on insurance premiums is becoming more evident, pushing affordability out of reach for many Australians. Bernadette Systa, a mother of five, faced an undeniable financial strain as her annual home and contents insurance costs surged from a modest amount to more than twice what she initially paid. This experience echoes a growing dilemma faced by households across the country. - read more |
| Understanding Jet Ski Insurance: What You Need to Know Jet ski insurance is an essential coverage option for anyone who owns a jet ski. While some jet ski owners may not see the need for insurance, it is important to understand the risks involved in owning a jet ski without insurance and the legal implications of not having coverage. - read more
|
| DIY Jet Ski Maintenance: Simple Steps to Keep Your Watercraft in Top Shape The thrill of slicing through the waves on a Jet Ski holds a special allure for many Aussies. But as any seasoned rider will tell you, the key to uninterrupted fun on the water lies in consistent maintenance. Not only does this ensure your Jet Ski remains in peak condition, but it also extends its life, enhances safety, and can save you a bundle on potential repairs. - read more
|
| Why Comprehensive Jet Ski Insurance Matters for Every Aussie Owner Jet skiing is rapidly becoming one of Australia's favourite pastimes, offering adrenaline-pumping fun in the sun for adventure enthusiasts across the nation. With our beautiful coastlines and an abundance of waterways, it's no wonder more Aussies are taking to the waves on these powerful machines. Jet skis present a unique blend of excitement and freedom, making them a sought-after choice for individuals looking to make the most of the Australian lifestyle. - read more
|
| Top JetSki Safety Tips Every Australian Rider Should Know Jetskiing is an increasingly popular water sport enjoyed by many Australians, with the country's vast coastline offering a playground for both adrenaline seekers and those looking to enjoy a day out on the water. In the excitement of zipping across the waves, safety can sometimes take a backseat, which should never be the case. Understanding and adhering to safety guidelines is crucial to ensure that every ride is as safe as it is enjoyable. - read more
|
| Leak Lockdown: Handling Fuel Spillage and Leaks on Your Jet Ski Jet skiing offers a thrilling escape on the water, combining the adrenaline rush of speed with the serene beauty of our aquatic landscapes. However, with the excitement comes the responsibility of maintenance, including the delicate task of managing fuel spills and leaks. These incidents, while hopefully rare, can pose significant challenges for even the most seasoned jet ski enthusiasts. - read more
|
|
Tips for Towing: How to Securely Tow a Disabled Jet Ski Back to Shore Towing a disabled jet ski back to shore is a scenario that many water sports enthusiasts hope to never encounter. Yet, the importance of being prepared for such an event cannot be overstated. Whether caused by mechanical failure or unforeseen circumstances, when your jet ski succumbs while you’re out on the water, knowing how to securely tow it is essential for the safety of both yourself and your watercraft. - read more
|
|
Essential Tips for Choosing the Right Jet Ski Insurance Plan in Australia For many Australians, a jet ski is a source of exhilarating aquatic adventures and cherished memories with family and friends. As much as jet ski ownership brings joy and excitement, it carries inherent risks and responsibilities. One crucial aspect of responsible ownership is ensuring that you are adequately protected with the right jet ski insurance coverage. - read more
|
|
Jet Ski Insurance: The Pros and Cons of Using a Specialist Broker A specialist jet ski insurance broker is a professional who specializes in providing insurance coverage for individuals who own jet skis. These brokers have extensive knowledge of the insurance needs of jet ski owners and can help you find the ideal policy that meets your unique requirements. - read more
|
|
Protecting Your Jetski Against Theft: Tips and Tricks Owning a jet ski provides endless hours of fun and excitement, but it’s important to note that these thrill-seeking vessels are a prime target for thieves. According to statistics, jet ski theft in Australia has been on the rise in recent years, with many people falling victim to these crimes. Unfortunately, theft of your beloved watercraft could happen any time, but there are measures you can take to safeguard your asset. - read more
|
|
Top Mistakes to Avoid When Comparing Jet Ski Insurance in Australia Embracing the Australian lifestyle often involves making the most of the surrounding waters, and there's hardly a more exhilarating way to do so than aboard a jet ski. Owning one offers a unique blend of adventure and excitement as you skip over the waves at thrilling speeds. The sense of freedom that comes with piloting your own jet ski is unmatched, making it a favored weekend activity for thrill-seekers and water sports enthusiasts alike. - read more
|