Mr Hockey appears to agree that more mergers and restructures are on the way. He blames that likely development for a perceived reluctance by the industry to accept the radical changes proposed in the revised legislation.

“The insurance industry has, until recently, resisted any expedited timetable for reform, claiming that such radical change must be implemented over a longer timeframe,” he said.

Announcing the new General Insurance Act will be introduced into the winter sittings of Parliament – which finish in June – Mr Hockey said: “While reform may be painful for the general insurance industry, given recent events, particularly involving HIH, the Federal Government will no longer tolerate industry resistance to stronger prudential requirements.”