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.
The form must be lodged every six months. The reporting periods are from 1 July to 31 December and 1 January to 30 June. The data must be submitted within 20 business days of each period end, with late submissions attracting penalties. They can be lodged in either paper form or electronically using APRA's Direct2APRA (D2A) system. Submission using paper form is only available to those providing aggregate data – that is, those who do not have any UFI business to report in that period.
Because the reporting obligation arises under the Corporations Regulations, a failure to report is a breach of a financial services law and may need to be notified to ASIC.
A copy of Form 701 can be found here or by accessing the APRA website.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.