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Insurer customer review program

ARPC undertakes insurer customer reviews on a regular basis. These reviews verify that insurer customers are meeting their obligations under ARPC’s reinsurance agreement. The following table details the number of reviews conducted over the past four years.

Number of ARPC insurer customer reviews

Type of review

2016-17

2017-18

2018-19

2019-20

Full review

27**

35*

28**

40*

Follow up review

9

16

1

2

Total

36

51

29

42

* Includes reviews on Singapore-based captive insurers
** Includes reviews on Lloyd’s syndicates

Insurer customers review trends

Most insurer customers were found to have high levels of compliance but there were some errors. ARPC has observed and addressed the following types of errors in some reviews:

  • out of date postcode tables
  • back-calculation of gross written premium (GWP)
  • terrorism exclusion clauses that are ambiguous or which could have unintended consequences
  • incorrectly considering insurance contracts which contain a terrorism sub-limit to be ineligible under the TI Act
  • not recognising pollution and contamination exclusions as terrorism exclusion clauses for the purposes of the TI Act
  • incorrect calculation of premium that contain broker commission which results in over or under payment of premium
  • incorrect calculation on premium that contains Withholding Tax (WHT) resulting in over or under payment of premium
  • staff turnover within the insurer customer, leading to a lack of understanding of ARPC processes.

ARPC is committed to working with insurer customers to reduce the incidence of these issues.