The little known APRA reporting requirement for AFSL holders with general insurance dealing authorisations

Are you an AFSL holder and authorised to deal in general insurance? If so, you should be aware of your obligations to provide data to APRA every 6 months by lodging a Form 701. This form collects data on contracts of insurance invoiced during the reporting period, including:

• aggregate premium data on contracts placed with APRA authorised insurers, Lloyd's underwriters or unauthorised foreign insurers (UFIs); and
• transaction data on contracts placed directly, or indirectly through a foreign intermediary, with UFIs.

These data collection arrangements allow APRA to increase the level of information they hold on the level and nature of insurance business placed with UFIs. They also permit ongoing monitoring of offshore insurance business under exemption arrangements, while facilitating a greater understanding of the Australian general insurance market and the impact of insurance failures.