Farm Insurance NZ
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
| Businesses Advocate for Reforms Amid Rising Insurance Premiums 01 Dec 2025: Paige Estritori The Australian Chamber of Commerce and Industry, in collaboration with the Insurance Council of Australia, has released a report highlighting the urgent need for coordinated reforms to address the escalating insurance premiums affecting small and medium-sized enterprises (SMEs). The report underscores that soaring premiums are compelling many SMEs, including beauty salons, to either forgo insurance or reduce coverage, posing significant risks to their operations. - read more |
| AFCA Determines Home-Based Waxing Salon Is a Business 01 Dec 2025: Paige Estritori The Australian Financial Complaints Authority (AFCA) recently ruled that a home-based waxing salon operated by a Suncorp customer constitutes a business, not merely a hobby. This decision has significant implications for beauticians managing home-based operations, particularly concerning insurance disclosures and compliance. - read more |
| ASIC Announces 2025 Focus on Insurance Pricing and Claims Handling 01 Dec 2025: Paige Estritori The Australian Securities and Investments Commission (ASIC) has unveiled its enforcement priorities for 2025, placing a significant emphasis on insurance pricing practices, claims handling, and complaints processes. This initiative aims to enhance consumer protection and ensure fair practices within the insurance industry. - read more |
| WFI Insurance's $250,000 Donation Supports Flood-Affected Queensland Farmers 30 Nov 2025: Paige Estritori In response to the catastrophic flooding that has devastated parts of western Queensland, WFI Insurance has stepped forward with a substantial donation of $250,000 to Rural Aid. This contribution is aimed at bolstering relief efforts for farming communities grappling with the aftermath of the region's most severe floods in half a century. - read more |
| AFCA Supports Significant Home Insurance Premium Increase Based on Updated Flood Risk Assessment 30 Nov 2025: Paige Estritori The Australian Financial Complaints Authority (AFCA) has recently upheld a substantial increase in home insurance premiums for a property, attributing the rise to updated assessments of flood risk. This decision underscores the critical role of accurate risk evaluation in determining insurance costs and the necessity for property owners to stay informed about potential changes in their risk profiles. - read more |
| Envest Group's TLI Underwriting: A New Era for Large Truck Fleet Insurance 30 Nov 2025: Paige Estritori Envest Group, a prominent player in the insurance industry, has announced the launch of TLI Underwriting, a new heavy motor agency set to commence operations at the end of this month. TLI Underwriting will function as an authorised representative of Envest's heavy motor specialist underwriter, ATL Insurance Group. - read more |
| Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|
| Securing Your Farm's Future: Top Estate Planning Tips for New Zealand Farmers New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
|
| Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
| Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|
| Navigating Farm Succession: A Step-by-Step Guide for Rural Australian Families Welcome to our comprehensive guide on navigating farm succession for rural Australian families. The journey of passing on a family farm from one generation to the next is both a critical and challenging milestone. Recognizing that every farm has its unique story and set of circumstances is fundamental to the process. - read more
|
| 5 Key Types of Farm Insurance Policies for Australian Farmers As an Australian farmer, understanding the necessity of farm insurance is crucial to protecting your livelihood. The agricultural sector is inherently fraught with risks, ranging from natural disasters to the unpredictable market. Farm insurance serves as a vital safety net, safeguarding your farm's infrastructure, crops, livestock, and more. - read more
|
|
|
Protecting Your Farming Future: Why Machinery Breakdown Coverage is Essential Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
|
|
|
Customizing Your Farm Insurance: Tailoring Policies to Fit Unique Agricultural Needs Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
|
|
|
Natural Disaster Preparedness: Insurance Tips for Farmers Facing Adversity In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
|