Asia Mideast Insurance and Reinsurance Pty Ltd (AMIR)

Asia Mideast Insurance and Reinsurance Pty Ltd (AMIR)


Discretionary Mutuals

We confirm that Asia Mideast Insurance and Reinsurance Pty Ltd (AMIR) has been granted a licence variation with an authorization to issue, and provide general advice on, miscellaneous financial facility – miscellaneous risk products limited to business risk products to retail and wholesale clients.  This will allow AMIR to offer discretionary risk products in respect of business risks, including (but not limited to) risks relating to physical damage, business interruption, public liability, and professional indemnity.  There is no limit on the size of the risk for which AMIR may offer discretionary risk products.  AMIR proposes to offer discretionary cover under the registered business name “Australian Business Shield”.

A discretionary risk product is a product which allows the product holder (the claimant) to make a claim for assistance in the event that certain events happen and they suffer a certain loss.  The client has the right to have their claim for assistance heard, and the issuer (in this case, AMIR as mutual manager) will (if the claim for assistance is within the terms and conditions of the product and membership of the mutual) make a decision whether to exercise its discretion for the benefit of the claimant or not.  If discretion is exercised, AMIR will pay the claimant an amount equal to all or part of the financial loss suffered by them up to the maximum limit of indemnity in their schedule of protection.  The product issuer generally undertakes to exercise its discretion in good faith.

A discretionary risk product is broadly comparable to an insurance policy, and the product issuer of a discretionary risk product (i.e. the discretionary mutual) is the risk carrier in a similar way as an insurer is the risk carrier under an insurance contract.

The key difference between a discretionary risk product and an insurance contract is the discretionary nature of the payments it makes.  At no time is the product issuer under a discretionary risk product legally compelled to make a payment on the happening of certain circumstances, as is an insurer.  A product issuer of a discretionary risk product at all times has the right to refuse financial assistance to a purchaser who makes a claim for assistance.  Therefore, the product issuer does not need to be authorised under the Insurance Act 1973 and will not be in breach of that Act by offering the discretionary risk product.

As product mutual manager, AMIR is able to facilitate for the mutual the reinsurance of the risks and liabilities the mutual offers as a discretionary risk product (although there is no obligation on the mutual to do so).  AMIR anticipates reinsuring 90% of the risk and retaining 10% of the risk.  Liabilities under a discretionary risk product can be reinsured with any insurer or reinsurer authorised under the Insurance Act 1973 or who is otherwise exempt from the requirements of that Act.

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Partnership Opportunities

AMIR (trading as Australian Market Insurance Resources) is a provider of insurance and reinsurance solutions working with clients to provide the most effective solution for their insurance requirements. We have more than 25 years track record working with clients in Australia and overseas. Our team of highly qualified and experienced insurance professionals have excellent relationships with both the local and global insurance markets. We are proud to confirm that we have already helped an Insurtech start up in finalising their insurance requirement with a local provider. We will be pleased to help other Insurtech ventures with their insurance requirements.

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