The Minister for Financial Services & Regulation, Joe Hockey, today agreed to the Australian Prudential Regulation Authority (APRA) issuing directions to companies within the HIH Insurance Group.
The directions ensure that HIH Insurance Limited and the seven Australian authorised insurers in the HIH Insurance Group cannot, without APRA's consent:
- undertake any insurance liabilities except for the purposes of the joint venture with Allianz;
- remove assets from Australia;
- reconstruct or sell any of their business; and
- make any material changes to reinsurance arrangements.
In addition, a monthly report must be made to APRA on the latest information about the financial position of these companies..
Mr Hockey said that "the directions that APRA will issue to the HIH Insurance Group will further help to secure the interests of policyholders".
Mr Hockey noted that APRA continues to work closely with ASIC, the HIH Insurance Group, the provisional liquidators and other insurance companies.