Enforcement actions on the rise
The Australian Prudential and Regulation Authority (APRA) took 36 enforcement actions related to general insurance in 2011/12, compared with only two the year before.
The regulator’s annual report shows it made 30 determinations under the Financial Claims Scheme, referred one case to the police or another agency and took five other actions.
There were no enforcement actions against life insurers for the second consecutive year, while superannuation matters comprised the largest number of actions, at 277.
APRA says it is working closely with the liquidator of Rural & General Insurance, who has declared a dividend in the liquidation and determined there will be no eligible policyholder shortfall.