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.

APRA publishes information about general insurance intermediaries and UFI reporting. For the separate Australian treatment of Lloyd’s underwriters, see what Lloyd’s of London is.

Is UFI the same as DOFI? #

DOFI stands for Direct Offshore Foreign Insurer. It is an older term commonly used for offshore insurers that are not authorised by APRA as Australian-authorised general insurers. Current regulatory and reporting material commonly uses unauthorised foreign insurer or UFI.

An offshore market may be considered for an unusual, complex or difficult-to-place risk, including where suitable Australian-authorised market options are not reasonably available. The insurer, policy terms, claims process, dispute-resolution arrangements, governing law and enforcement position should be considered for the specific placement.

You can check Australian-authorised insurers on APRA’s register of general insurers and read about the Financial Claims Scheme.