An unauthorised foreign insurer ceased trading last week when the Australian Securities and Investments Commission (ASIC) obtained orders from the Federal Court to wind up its business.

ASIC’s action follows complaints from Australian policyholders that more than $1 million of claims and policy refunds had not been paid by Solomon Islands-based International Unity Insurance General (IUI General), and its Australian agent, International Unity Insurance Australia (IUI Australia).

ASIC alleged both companies were insolvent and the insurer did not have the funds to meet existing claims.

IUI General held a licence in the Solomon Islands from March 2001 until March 2002, when it was cancelled by the Solomon Islands’ Controller of Insurance.

Sunrise Exchange News reported two years ago that IUI General was an unlisted public company with all but one of its directors living in Melbourne; the other lived in England. The company’s registered address was in the Melbourne suburb of Wheelers Hill with its “principal place of business” listed the 9th floor of 30 Collins Street, Melbourne.

It is understood IUI General may have written as much as $10 million in premiums in the heavy haulage market. Its general policies also included prestige motor vehicle insurance and commercial insurance risks for the hospitality and hotel industry.

Paul Pattison, of Pattison Consulting, has been appointed the official liquidator.