An unauthorised foreign insurer, often shortened to UFI, is an overseas insurer that meets the relevant definition under Australia’s Insurance Regulations and is not an APRA-authorised general insurer in the usual way.

Australian law permits insurance to be placed with UFIs in specified circumstances.

These can include certain high-value or atypical risks, and circumstances where a risk cannot reasonably be placed in Australia. The current framework is contained in the Insurance Regulations 2024, as amended.

How is a UFI different? #

A UFI is not prudentially regulated by APRA in the same way as an APRA-authorised general insurer.

For example, the Australian Government Financial Claims Scheme applies to eligible policies issued by APRA-authorised general insurers and does not generally provide the same protection for a UFI placement.

If Webber Insurance proposes insurance through a UFI, we can explain:

• Who the insurer is
• Where the insurer is based
• Why an overseas placement is being considered
• Important policy terms and exclusions
• Relevant regulatory differences
• Other matters to consider before proceeding

Lloyd’s underwriters are treated separately and should not automatically be described as UFIs.