The National Insurance Brokers Association's (NIBA) new guide to placing business with direct offshore foreign insurers (DOFIs) has won praise from an unlikely source – Dexta Corporation, whose security reinsurer Axis Specialty Europe is a DOFI. Not that Sydney-based Dexta ever had any concerns about not meeting NIBA’s guidelines – Axis Europe has about $US200 million ($269 million) in capital to use.

“Financial security is paramount when placing insurance business,” Dexta Chief Underwriting Officer Tony Wheatley said.

Congratulating NIBA on developing a strategy for identifying and managing risks associated with DOFIs that fail to meet certain standards, he says the guide has wider applications for brokers.

“It’s important to point out that some of the risks NIBA lists as being relevant to DOFIs are criteria on which brokers should satisfy themselves for all insurers when selecting an appropriate insurer for a client’s specific insurance requirements,” he said.