Insurance (prudential standard) determination No. 1 of 2018 (Cth)

Insurance (prudential standard) determination No. 1 of 2018

Prudential Standard GPS 410 Transfer and Amalgamation of Insurance Business for General Insurers

Insurance Act 1973

I, Pat Brennan, delegate of APRA, under subsection 32(1) of the Insurance Act 1973 (the Act) DETERMINE Prudential Standard GPS 410 Transfer and Amalgamation of Insurance Business for General Insurers, in the form set out in the Schedule, which applies to all general insurers.

This instrument commences upon registration on the Federal Register of Legislation.

Dated: 13 April 2018 [Signed] Pat Brennan Executive General Manager Policy and Advice Division

Interpretation In this Determination:

APRA means the Australian Prudential Regulation Authority.

general insurer has the meaning given in section 3 of the Act.

Schedule

Prudential Standard GPS 410 Transfer and Amalgamation of Insurance Business for General Insurers comprises the document commencing on the following page.

Prudential Standard GPS 410

Transfer and Amalgamation of Insurance Business for General Insurers Objectives and key requirements of this Prudential Standard This Prudential Standard deals with the transfer or amalgamation of insurance business of a general insurer. Insurers transferring or amalgamating insurance business in accordance with the Act are subject to procedural requirements set out in the Act and this Standard. These requirements are designed to ensure that affected policyholders, and other interested members of the public, are informed about any such transfer or amalgamation, are given accurate information about it, and are provided with the opportunity to obtain more detailed particulars if they wish to do so. The key requirements of the Act and this Prudential Standard are: * An insurer cannot make an application to the Court for confirmation of a scheme of transfer or amalgamation unless, amongst other things, an insurer provides a copy of the scheme and any actuarial reports on which the scheme is based to APRA. * Prior to making an application to the Court, and with APRA's approval, the insurer must also publish a notice of intention to make the application in the Government Gazette and relevant newspapers. * An application to the Court for confirmation of a scheme cannot be made unless, amongst other things, a summary of the scheme, approved by APRA (the approved summary), has been given to every affected policyholder. A copy of the scheme must also be available for public inspection. * An insurer to which insurance business is transferred or amalgamated must give APRA a range of documents after the Courts have approved the scheme, including a statement of the nature and terms of the transfer or amalgamation, and the Court order confirming the scheme. Details on these requirements are contained below.