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No easy solution over DOFIs

Insurers influenced the decisions by Assistant Treasurer Chris Bowen related to direct offshore foreign insurers (DOFI), according to NIBA CEO Noel Pettersen.

He told the Australasian Association of Insurance Brokers annual conference in Ballarat at the weekend that finding a way to meet insurers’ demands and brokers’ needs has not been easy for the new minister.

“There’s little doubt that Mr Bowen’s decisions have been influenced by Australian-based insurers, who of course are answerable to their shareholders,” he told about 200 delegates meeting in the Victorian regional city.

“It hasn’t been easy getting a solution that suits everyone.”

Brokers place nearly 90% of commercial insurance and they play a pivotal role under the new DOFI arrangements.

“We think the exemptions could have been less bureaucratic for insurance buyers by automatically applying them to all very large insurance policies with a high premium,” he said.

“We’ve also told the Minister the new DOFI requirements will be difficult to implement from July 1, and that the commencement date should be deferred for at least three months so the right protocols and practices can be set up.”