NSW Auditor-General Peter Achterstraat has raised concerns about the growing liability of HIH claims managed by the NSW Building Insurers’ Guarantee Corporation.

The corporation settled 27 claims costing the Government $5.9 million last financial year, and its liabilities have grown by $5.4 million to $154 million, the Auditor-General says in his annual report.

The corporation administers one of the HIH rescue packages relating to home warranty packages written by the failed insurer and Mr Achterstraat says that the liability for outstanding claims was expected to decrease as claims were paid, but this has not happened.

He recommends the corporation “continue to closely monitor the claims liability and take appropriate action to ensure claims are finalised as soon as practicable”.

HIH collapsed in 2001, and since the corporation took over the claims it has paid out $206 million and recouped $110 million from the company’s liquidators and reinsurers.