New regulations address HIH failures

Many of the rules are in response to the problems created by financial interrelations of insurers within holding companies

After an extended period of consultation since 2006, APRA (Australian Prudential Regulation Authority) is rolling-out its new prudential framework for the supervision of general insurance activities in Australia. The new standards take effect from March 31, 2009 as the final act of legislative reorganisation stemming from the Royal Commission’s recommendations following the HIH failure.