APRA is empowered to issue a general insurer a recapitalisation direction lifting its capital to a set level, triggered where the insurer itself warns APRA it may soon be unable to pay what it owes or is about to suspend payment, where APRA judges that, lacking outside support, the insurer could end up unable to pay its debts or could halt payment, may be unable to carry on business consistently with policyholders' interests or financial system stability, or where the insurer has already become unable to meet obligations or has suspended payment (s 103B(1)); APRA consults the ACCC first unless the ACCC declines (s 103B(2)), and may vary or revoke the direction in writing (s 103B(5)-(6)). More broadly, APRA may direct a general insurer or authorised NOHC where it has contravened or is likely to contravene the Act, its regulations, the prudential standards, or the data-collection regime under separate Commonwealth legislation, where a direction is necessary in policyholders' interests, where the insurer has, or soon will have, trouble covering its liabilities, where there is a material risk to its assets or a material deterioration in its financial condition, where it is conducting affairs improperly or in a way that risks financial system stability, or to prevent material prejudice to policyholders (s 104(1), extending to a subsidiary's conduct under s 104(1A)). The insurer gives effect to every direction within the time and manner APRA specifies.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.