DOFI stands for Direct Offshore Foreign Insurer.

It generally refers to an overseas insurer that is not authorised by the Australian Prudential Regulation Authority (APRA) as an Australian-authorised general insurer.

Australian insurance arrangements allow certain risks to be placed with offshore insurers where the applicable requirements are satisfied.

Why might an offshore insurer be used? #

Examples can include:

• Cover not reasonably available from Australian-authorised insurers
• Unusual or complex risks
• Specialist overseas capacity
• Difficult-to-place occupations or activities
• Risks requiring specialist international markets

Using an offshore insurer does not automatically mean the policy is unsuitable.

However, there can be important differences.

What should be considered? #

Depending on the placement:

• The insurer is not prudentially regulated by APRA in the same way as an APRA-authorised Australian general insurer
• Australian Financial Claims Scheme protection may not apply
• Different overseas legal or regulatory arrangements can apply
• Claims and dispute-resolution processes can differ
• Jurisdiction and enforcement issues can arise
• Currency and taxation considerations can be relevant

You can check Australian-authorised general insurers using APRA’s register of general insurers.

Information about the Financial Claims Scheme is also available from APRA.

Where Webber Insurance proposes an offshore placement, we will identify the relevant insurer and explain material differences associated with the placement.

Contact our team if you have questions about a proposed offshore insurance arrangement.