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
| Preparing for Summer Storms: Elders Insurance's Advice to Farmers 01 Jan 2026: Paige Estritori As the Australian summer approaches, Elders Insurance has issued a cautionary advisory to farmers, emphasising the heightened risk of storm-related damages during this season. Recent data indicates a significant increase in insurance claims due to summer storms, underscoring the need for proactive measures to safeguard agricultural assets. - read more |
| New Partnership Offers Insurance Savings for Sustainable Farmers 01 Jan 2026: Paige Estritori In a significant move towards promoting sustainable agriculture, WFI Insurance has partnered with AgCarE to offer premium reductions to farmers who achieve AgCarE certification. This collaboration aims to enhance financial, environmental, and social outcomes for Australian farmers and rural communities. - read more |
| IAG Highlights Climate Change's Impact on Rising Insurance Costs 01 Jan 2026: Paige Estritori Insurance Australia Group (IAG) has issued a warning to Australians, indicating that home insurance premiums are expected to rise due to the increasing frequency and severity of extreme weather events, a trend attributed to climate change. This development underscores the pressing need for both mitigation and adaptation strategies to address the evolving risks. - read more |
| Insurers Flag Holiday Road Risks Amidst Freight Traffic Surge 01 Jan 2026: Paige Estritori As Australia enters the summer holiday season, insurers and transport specialists are raising alarms about heightened road risks resulting from the convergence of increased freight activity and holiday travel. This period sees a significant uptick in both passenger vehicles and heavy trucks on the roads, amplifying the potential for accidents and safety incidents. - read more |
| Escalating Collision Risks Challenge Australian Fleet Operators 01 Jan 2026: Paige Estritori Australia's transport and haulage sector is currently navigating a period of heightened operational risk, marked by an uptick in both the frequency and severity of motor collision claims. This trend underscores the pressing need for fleet operators to adopt proactive risk management strategies and leverage advanced insurance solutions to safeguard their operations. - read more |
| Global Insurtech Investments Halve as AI Adoption Rises 01 Jan 2026: Paige Estritori The global insurtech sector experienced a significant downturn in funding during the fourth quarter of 2024, with total investments plummeting by 50% to US$688.24 million compared to the previous quarter. This decline marks the lowest annual funding level since 2018, with the total for 2024 reaching US$4.25 billion, a 6% decrease from the prior year. - 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
|
| 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
|
| 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
|
| Preparing for the Worst: Developing a Comprehensive Disaster Response Plan for Your Farm As a farmer, you know that unexpected events can have a significant impact on your farm and your livelihood. Natural disasters, such as floods, fires, droughts, and storms, can occur at any time and have devastating consequences. That's why it's crucial to have a comprehensive disaster response plan in place to protect your property, assets, and, most importantly, your loved ones and livestock. In this article, we'll provide a step-by-step guide on how to develop a disaster response plan for your farm. - read more
|
| Common Pitfalls to Avoid When Insuring Your Farm Equipment In the world of agriculture, having the right insurance coverage is essential. Farming is a high-risk industry that deals with unpredictable elements, and insuring your farm equipment can safeguard your livelihood. - 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
|
|
|
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
|