Stardex subsidiary General Aviation Underwriting (GA) has signed a new aviation underwriting agency agreement with Assetinsure, replacing a prior partnership with AIG Europe (UK).

AIG pulled the plug on GA, according to Stardex CEO Bob Lee.

“The principal reason explained to us was that it all stemmed from the upcoming DOFI [direct offshore foreign insurer] legislation,” Mr Lee said.

DOFI legislation is due to be implemented on July 1, and will put greater controls on foreign insurers operating in Australia.

AIG Australasia has instead launched its own operations with the set-up of Brisbane-based AIG Aviation. And GA will instead partner with Assetinsure, which is also an aviation specialist.