The Australian Prudential Regulation Authority (APRA) welcomes the financial hardship assistance package for HIH policyholders announced today by the Minister for Financial Services, JoeHockey.

The package, developed by the Government with significant input from the insurance industry, the provisional liquidator and APRA, will relieve the suffering of policyholders who had not been part of any of the previous arrangements that had been made for retail policyholders before the provisional liquidation of HIH.

APRA CEO Graeme Thompson said, Our first priority has been to ensure that HIH policyholders received replacement cover and that those who were badly affected by the collapse of the company received some type of hardship assistance.

The package announced by the Government today addresses the needs of those hardest hit by the provisional liquidation of HIH.

Now that arrangements for that vital assistance are in place, APRA will be concentrating on the passage of new, stronger general insurance legislation and on finding out exactly why the company failed when its audited accounts showed it was solvent.

For further information contact:

Gloria Peterson
Public Affairs Manager
02 9210 3385 or 0419 250 286