NobleOak Life breaches reporting obligations

The insurance company, NobleOak Life, has breached its prudential and reporting obligations in relation to capital. In a media release this morning, the Australian Prudential Regulation Authority (APRA) said it will take action “as needed” to hold those responsible to account.

“APRA has written to the board of NobleOak to formally advise it has breached Prudential Standard LPS 117 Capital Adequacy: Asset Concentration Risk Charge (LPS 117) and Reporting Standard LRS 117.0 Asset Concentration Risk Charge (LRS 117.0),” said the regulator’s release.

APRA said the breaches concern the measurement and reporting of NobleOak’s reinsurance exposures and the associated asset concentration risk. The regulator said these resulted in a breach of capital requirements.

“NobleOak’s non-compliance poses no immediate risk to members and policyholders,” said the ARPA release. “It is not connected to any recent financial market movements or developments.”

In response, said the release, NobleOak has advised APRA of its plan for remediating the breach by 1 July 2023. APRA said it is satisfied the plan is credible “and will monitor NobleOak’s execution of the plan closely over the coming months.”

The NobleOak board, said the release, has also launched a review of its control processes for complying with APRA’s prudential standards.

On its website, the insurer refers to itself as “Australia’s most awarded direct life insurer 2022” and a provider of “quality cover you can trust with better service and lower premiums.”