The shockwaves from the HIH collapse continue to grow. And while it’s becoming repetitious to keep highlighting stories of unpaid claims, the media is beginning to focus on some of the tragic personal stories, as well as the impact on individual businesses.

In most cases, businesses have been able to insure with other underwriters, resigning themselves to waiting up to 10 years for any refunds or claims payment. Brokers are reporting many clients are unhappy with the extra amount the underwriters are now demanding. The market is now being dominated by the suppliers. Rises up to 50% are normal, while some professional groups and hard-to-place risks have incurred premiums up to 250% higher than HIH was charging.

Calls for some form of levy on existing policies to meet claims shortfalls are likely to develop further this week, although the Prime Minister and the insurance industry have both expressed reluctance to get involved in such an exercise. Their reasons are, of course, very different.

As InsNet News reported last week, NSW Premier Bob Carr has called for an 8% levy on all existing policies. Not unexpectedly, the industry’s reaction has been less than warm, with QBE MD Frank O’Halloran leading the charge.

Mr Howard also expressed support for APRA last week, and the beleaguered regulator fired a few shots of its own as it restated its position over HIH.