The Federal Government’s continuing delays in finalising exemptions to the new direct offshore foreign insurer (DOFI) rules has prompted NIBA to call for a three-month extension to the July 1 implementation deadline.

NIBA representatives told Assistant Treasurer Chris Bowen in February that brokers wanted exemption rules by March 31 to prepare for the 1 July implementation.

Now CEO Noel Pettersen says with the March 31 deadline gone, brokers don’t have the time to develop insurance programs for clients with large or complex risks, or prepare staff and procedures.

“The Government’s intention in relation to the exemption arrangements remains unknown and as a result NIBA suggests the new arrangements be deferred until October 1 or January 1,” he said.

He says NIBA supports the regulation of offshore insurers but is keen to see automatic exemptions applied to very large insurance premiums – around 1% of the policies bought in Australia.