Case Study: Supporting an Underwriting Agency to Secure an APRA Licence

THE CHALLENGE

A specialist underwriting agency with a growing portfolio of niche insurance products sought to transition from acting as an agent to becoming a fully authorised insurer in Australia. To do so, the organisation needed to meet the Australian Prudential Regulation Authority’s (APRA) stringent prudential and governance requirements and demonstrate robust frameworks for managing risk, capital, and reinsurance.

Applying for an APRA licence is a rigorous and detailed process that demands comprehensive documentation, evidence of sound governance, and an embedded risk culture across the organisation. The client required expert support to:

• Develop key frameworks and strategies required by APRA, including a Risk Management Strategy (RMS), Reinsurance Management Strategy (REMS), and Internal Capital Adequacy Assessment Process (ICAAP).
• Build executive and Board capability in risk and governance to demonstrate that the organisation could operate as a prudentially sound insurer.
• Align all policies, frameworks, and risk reporting practices with APRA’s Prudential Standards (CPS 220, GPS 110, GPS 230, etc.).
• Provide interim and ongoing Risk Officer support.

OUR APPROACH

InConsult was engaged to support the organisation through the end-to-end licensing process. Working closely with the Board, CEO, CFO and executive leadership team, we:

• Developed and documented the required APRA-compliant frameworks and strategies, ensuring consistency and alignment across risk, capital, and reinsurance management.
• Facilitated targeted training sessions for executives and senior managers to strengthen their understanding of APRA’s expectations, risk governance principles, and prudential reporting obligations.
• Reviewed and refined the risk governance framework, risk appetite, and escalation processes to ensure the organisation demonstrated strong accountability and prudent oversight.
• Translated legal compliance documents to practical meaningful practices.
• Supported the preparation of documentation and responses to APRA queries throughout the application process.

OUTCOMES & BENEFITS

With InConsult’s guidance, the organisation successfully obtained its APRA licence and is now operating as a regulated insurer in Australia. The engagement delivered:

• Comprehensive, APRA-compliant governance, risk, and capital management frameworks.
• Increased Board and executive confidence in risk oversight and regulatory engagement.
• A well-structured, sustainable approach to risk management, reinsurance management and capital management.
• Enhanced readiness to manage ongoing prudential obligations and future growth.

The insurer is now confidently underwriting insurance business under its own licence, supported by a mature and well-governed risk management framework. InConsult’s practical expertise and collaborative approach enabled the client to meet complex prudential requirements efficiently – turning regulatory compliance into a foundation for long-term success.

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This case study is drawn from a real-life engagement/project between InConsult and our client. While client details are not disclosed for commercial and confidentiality reasons, this case study is based on a real engagement and reflects genuine results and outcomes. Specific client references and project details can be shared with prospective clients during the proposal process.