The terms under which the Federal Government’s Royal Commission into the HIH collapse will work haven’t been revealed yet. It will take place at the same time as the $5 million ASIC inquiry, and may even duplicate that inquiry’s investigations.

ASIC Chairman David Knott announced he would not be involved in the ASIC-based inquiry because of concerns that he has a potential conflict of interest. Media commentators have suggested the two commissions could be rolled into one, which would be economically – if not politically – expedient.

One possible ray of sunlight among the gloom for insurers: the Royal Commission will be given the powers to look at state regulators as well. That may bring the tangled world of uncompetitive and inefficient state-based insurance schemes back into the spotlight.