Assetinsure is supervised by the Australian Prudential Regulation Authority (APRA). As a regulated insurance company, Assetinsure has to meet all requirements applicable to locally licensed and regulated entities. These include :
- Liability Valuation and Risk Management Standards
- Ongoing Reporting and Supervision Standards; and importantly
- Capital Adequacy Requirements
The company has a strong financial position as measured by the APRA Solvency Coverage. An excerpt of the APRA data is provided in the Brief Corporate Update on Assetinsure’s website under Financials.
APRA requires licensed insurers to hold capital in excess of Minimum Capital Requirements “MCR” (per Prudential Standards GPS 100). These are calculated on the basis of the risk profile of each licensed insurer. APRA solvency rules require that the more risk an insurer accepts (e.g. less reinsurance protection or riskier investments) the more capital it must maintain. The resulting minimum capital base reflects the risk profile of a licensed insurer. The Solvency Coverage then measures the ratio of actual capital to MCR, i.e. the solvency coverage is showing by how much the minimum capital amount is exceeded.
In light of this risk based solvency regime and in the context of the Australian market, Assetinsure is well capitalised. A strong level of solvency has been a consistent feature of the company throughout the period it has been writing direct insurance business (refer Concise Annual Reports on our website under Financials).
APRA granted Assetinsure Pty Ltd a general insurance licence on February 18, 2004.
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