The Reserve Bank has issued formal directions to a local insurance company after repeated non-compliance in disclosing information.
Pacific International Insurance offers a range of personal and business insurance solutions, including general liability, professional indemnity, pet insurance and property damage.
The central bank, which overseas the conduct of insurers, issued a warning to Pacific in 2018 over its failure to disclose information in its financial statements.
Deputy governor Geoff Bascand said the company had a poor history of non-compliance.
“Despite these warnings, Pacific International committed further breaches relating to reporting, disclosure and notification requirements.”
In January 2020, the Reserve Bank instructed Pacific International to commission an independent report on its systems, regulatory processes, resources and oversight controls.
“Based on the findings of this independent report, the directions require Pacific International to strengthen, monitor and continuously improve its compliance systems, controls and processes, and to obtain independent verification of this improvement in a year’s time.
“The directions are an escalated regulatory response applying the available regulatory tools to ongoing compliance failures.”
It is an offence under the Insurance (Prudential Supervision) Act to contravene a direction, subject to maximum penalty of three months’ imprisonment or a fine of $200,000 for an individual, and a fine of $500,000 for a body corporate.