Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 30 SEPTEMBER 2008

Insurer Bail-Outs - Should Australian Policy Holders Be Concerned?

Gadens Lawyers
Explore more from Gadens Lawyers

In the wake of the US Federal Reserve's US$85 billion bail-out of AIG, Australian policy holders may understandably be concerned about the security of their own insurance arrangements.

AustraliaInsurance

In the wake of the US Federal Reserve's US$85 billion bail-out of AIG, Australian policy holders may understandably be concerned about the security of their own insurance arrangements.

In light of recent events and the shock waves being felt by insurers as a result of the sub-prime crisis, it is timely to consider the policy holder protections in place in Australia. Local insurers and branches of foreign insurers authorised to conduct insurance business in Australia are required to comply with strict capital requirements imposed by the Australian Prudential Regulation Authority (APRA). Protections also exist under the Insurance Act and Corporations Act in the event of an insurer's or reinsurer's collapse.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

AFCA’S New Approach To General Insurance Claims Handling: GICOP Compliance May Not Be Enough

The Australian Financial Complaints Authority has published new guidance clarifying how insurers must handle claims, including strict timeframes and expanded compensation rules. Insurers now face potential liability beyond policy limits for unreasonable delays, and may be required to compensate claimants for non-financial losses. With storm season approaching and complaint volumes rising, these changes create significant operational and financial pressure on the insurance industry.
AustraliaInsurance
Gilchrist Connell
Gilchrist Connell
Article

The Data Centre Boom: Growth, Opportunity And Emerging Risk For The Insurance Industry

Data centres have become critical infrastructure assets in Australia's digital economy, attracting significant investment while facing mounting regulatory scrutiny over energy demands and infrastructure costs. As these facilities expand to meet AI-driven computing needs, they present complex insurance challenges spanning climate exposure, business interruption risk, and cyber vulnerabilities that require careful risk management strategies.
AustraliaInsurance
Kennedys
Kennedys
Article

ASIC Puts Motor Vehicle Premium Transparency Under The Spotlight

ASIC's Report 838 reveals significant transparency gaps in motor vehicle insurance premium communications, finding that renewal documents often fail to explain price changes adequately and that over 30% of consumers who contacted their insurer successfully negotiated lower premiums. The report establishes clear expectations for better practice in pricing disclosures and signals continued regulatory scrutiny of insurance pricing practices.
AustraliaInsurance
Gilchrist Connell
Gilchrist Connell
Article

From Sustainability To Supply Chains: Rethinking Data Centre Risk In APAC

Asia-Pacific data centre expansion is creating unprecedented insurance challenges as rapid infrastructure growth strains regional water and power resources. Could intensive resource consumption by data centres generate environmental liability claims from affected communities and regulators? And are traditional property insurance models adequately capturing the contingent business interruption risks created by concentrated digital infrastructure dependencies?
AustraliaInsurance
Kennedys
Kennedys
Article

That Wasn´t Supposed To Be Covered! General Reinsurance Australia Ltd V HIH Casualty & General Insurance Limited (In Liquidation) [2009] NSWCA 22 - A Cautionary Tale For Reinsurers

Reinsurance treaties often employ general language and avoid complicated drafting. A recent decision demonstrates the differences in opinion that may arise between reinsurers and cedants, and the risks faced by reinsurers in relying on vague terminology and appeals to common industry understandings.
AustraliaInsurance
Gadens Lawyers
Gadens Lawyers