The prudential regulator has accepted an enforceable undertaking from a global insurer to rectify "serious issues" with its compliance processes.
APRA said it had agreed the court enforceable undertaking (CEU) with Allianz Australia Insurance Limited "acknowledging its past risk and compliance weaknesses and committing to finish rectifying these serious issues".
"The CEU commits Allianz to completing a series of transformation programs that relate to risk maturity, compliance, conduct and culture in a timeframe agreed with APRA," the regulator said.
APRA said Allianz had undertaken to provide APRA with "greater assurance that these programs are complete and operationally effective" by assigning a responsible person to be accountable, providing written confirmation from the board that all components had been completed, and appointing independent reviewers to provide updates on the status of the programs.
"Allianz’s weaknesses in its risk culture, risk governance, and risk management are longstanding," APRA commented.
"Allianz has acknowledged in the CEU that it took a narrow, legalistic view of compliance and had inadequate processes to escalate and address compliance issues. It also recognises that there was a lack of awareness of such matters at board and senior management level".
APRA said Allianz remained subject to an additional $150 million capital requirement and "effective and sustainable implementation of its transformation programs is integral to any decision to remove this add-on."