The regulatory approval was issued under subsection 12(2) of the Insurance Act 1973, which governs the licensing of insurance entities in Australia.
A subsidiary of Insurance Australia Group (IAG), CGU Australia is known for providing a range of insurance services, including commercial, rural, and personal insurance. It is also one of the top three providers of workers' compensation insurance in Australia. The company was established in Australia in 1998, with roots dating back to 1851 in the United Kingdom.
Under the Insurance Act 1973, companies must obtain APRA authorisation before engaging in insurance activities in Australia. This regulatory requirement covers businesses offering insurance or reinsurance against loss or damage linked to specified events, excluding life insurance and benefits provided by friendly societies.
To qualify for APRA approval, an insurance company must submit an application containing details about its corporate structure, directors, business operations, and financial standing. Financial requirements include maintaining paid-up share capital or asset value of at least $200,000 and ensuring that assets exceed liabilities by either $100,000 or 15% of premium income. The company must also establish approved reinsurance arrangements unless an exemption is granted.
Authorised insurers are subject to ongoing regulatory obligations, including maintaining adequate capital levels, adhering to asset-to-liability ratios, and submitting periodic financial reports to APRA. These reports include underwriting accounts, profit and loss statements, balance sheets, and statements of assets and liabilities.
APRA has the authority to investigate the affairs of authorised insurers if concerns arise regarding their financial health or compliance with the Insurance Act.
CGU Australia’s inclusion in APRA’s list of regulated institutions is recorded under General Insurance authorisation conditions, which were published on May 12, 2025. The listing affirms CGU's status as an APRA-regulated insurer, enabling it to conduct new and renewal insurance business in the Australian market.
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