It isn’t only the major insurance industry groups that are critical of APRA’s handling of the HIH collapse. Now the Australasian Institute of Chartered Loss Adjusters has joined the Association of Risk & Insurance Managers to take a swipe at the regulator.

AICLA President Leo Fluitsma said “there is obviously something radically wrong” when APRA couldn’t anticipate Australia’s second-largest insurance company collapsing. “There must be an urgent review of the regulatory system to ensure APRA has the power to prevent this sort of debacle occurring again,” he said. “Where are the nation’s political leaders on this issue?”

Another critic of the situation is ARIMA President Bruce Ferguson, who said the prudential legislation must be overhauled – which is now happening – to ensure the market “is never again caught in such a mess”.

Mr Ferguson said insurance buyers deserve more information from the regulator to ensure they are aware of the inside knowledge on insurers. “I’d like to see APRA’s role reviewed to ensure it is getting information on solvency standards on a more timely basis and that the relevant intelligence is being passed to the market,” he said. “We need a watchdog with more teeth, and one that barks more often.”