Brokers have been warned by APRA about serious problems with unauthorised foreign insurer Atlantic & Pacific Insurance. The company has falsely claimed to be incorporated and registered in the Marshall Islands, according to APRA CEO Graeme Thompson.

He said APRA has received advice from the office of the Attorney-General of the Republic of the Marshall Islands that, contrary to claims made by Atlantic & Pacific, it is neither registered nor incorporated in the Marshall Islands.

Mr Thompson said Atlantic & Pacific has been providing public liability cover in Australia through a number of Australian brokers. But because Atlantic & Pacific isn’t registered in the Marshall Islands, it isn’t subject to US financial supervision – or at least as much as such supervision applies to a US territory.

“APRA has secured the acknowledgment of the insurance broker that was wholesaling Atlantic & Pacific products that Atlantic & Pacific is not a registered insurance company in any jurisdiction,” he said. 

The broker – Melbourne company Allied Asia – has begun notifying all policyholders of this fact, and is understood to have undertaken to secure alternative cover for them.

“We have taken all the available steps to protect the interests of Australian policyholders,” Mr Thompson said.

APRA said consumers with policies written by Atlantic & Pacific should immediately contact their broker to determine whether they are covered or have policies that may be affected.