Giant Bermuda-based insurer Axis is keen to gain a licence from the prudential regulator following the Federal Treasury’s decision to regulate direct offshore foreign insurers (DOFIs).

Subsidiary company Axis Specialty provides security for Dexta Corporation and Macquarie Underwriting, both members of Sydney-based Stardex Insurance Group.

Axis Insurance Professional Lines division President Graham Evans says the company is keen to obtain a licence. “Axis Specialty will endeavour to promptly obtain approval by [the Australian Prudential Regulation Authority] and is ready to start the process when the APRA guidelines take effect,” he said.

Mr Evans says he understands the uncertainty that has surrounded the status of some DOFIs. Along with the company’s commitment to comply, the financial strength of Dexta, Macquarie and Axis Specialty will be apparent to the consumer.

Dexta Corporation MD Tony Wheatley says the Stardex companies support the need to impose some controls on placement of Australian insurance business with foreign insurers not regulated by APRA.

But he says Stardex also recognises the importance to Australian consumers and businesses of maintaining the capacity provided by such insurers.

Mr Wheatley told Sunrise Exchange News Axis is a well-respected and well-capitalised insurer that is keen to meet APRA and discuss what is involved in gaining a licence. “We have had lengthy discussions with Axis about the proposals and we’re positive about it. We just don’t know how long it will take to gain a licence.”

Stardex Insurance Group CEO Bob Lee says it is important that Australian insurance customers have access to global capacity and expertise while maintaining a high degree of certainty over payment in the event of a claim.

“Dexta, Macquarie and Axis Specialty have been very clear in their support of the Federal Government imposing some form of regulation on DOFIs,” he said. “We will await more detail from Treasury on how the regulation will be applied.”