Analysing HIH's recent events

On March 15, 2001, Australia¡¯s second largest insurance company HIH collapsed and an application for its liquidation was submitted. It soon escalated into Australia¡¯s biggest corporate failure in June after the insurer¡¯s final tally of losses was estimated to be about $3 billion in Australia and almost $5 billion worldwide, very well above the early estimate of $1 billion . HIH¡¯s demise was mainly due to the criminal and unethical activities that the company directors committed, as …

…Insurance Group. Additionally, some State Government have provided rescue packages for HIH¡¯s policyholders to free from the stranded situation due to the liquidation of the insurer. For example, a new levy on building permits could cover half the cost of a $35 million Victorian Government rescue package for victims of the HIH collapse. The investigation of HIH is still continuing, and it is a long-term battle for all the people who have been involved in.