Aussie firms support regulation of foreign insurers

CANBERRA, Australia— Australia's move to require foreign insurers to be authorized by the Australian Prudential Regulation Authority is drawing support from two companies funded by a European specialty underwriter.

Dexta Corp. Pty. Ltd. and Macquarie Underwriting Pty. Ltd., insurer members of the Stardex Insurance Group, whose security is provided by AXIS Specialty Ltd. Europe, released a statement saying they have given "in principle support" to the government's regulatory change that is effective July 1, 2008.

AXIS Specialty plans to seek prompt regulatory approval for the Australian operations under the new proposals, the company said.

APRA was given the new authority earlier this month when Australia's minister for revenue and assistant treasurer announced that the country's Insurance Act 1973 would be amended to require foreign insurers to be regulated in the same manner as domestic companies.

The ruling changes the regulatory scheme for captives, foreign insurers and foreign reinsurers.