Upset insurer quits council

By RICHARD BRADDELL

Insurer HIH says it has pulled out of the Insurance Council because of what it calls the council's inflammatory stance during the renationalisation of workers' compensation, and unreasonable demands for information.

HIH director Adrian Tulloch said the company, which has an Australian parent, joined the council two years ago in anticipation of the privatisation of workers' compensation, an area of HIH expertise across the Ditch.

At the time, HIH registered its concerns about the detailed information the council called for.

It argues that the amount of detail would have given competitors commercially sensitive information in some areas where HIH is particularly strong.

"We are in such a strong position in some products that contributing the information would enable competitors to readily interpret our performance, even though the source of the statistics would not be specifically identified," said Mr Tulloch.

He said HIH had been second largest, behind Fusion, in the privatised workers' compensation market, with $120 million in premiums.

HIH had also been concerned about comments by the council, including one that it would consider suing the Government.

"We were looking for a much more conciliatory approach with the Labour Government," Mr Tulloch said.

Insurance Council chief executive Chris Ryan said the provision of data had been an issue with HIH for the two years it was a member, and as no mutually agreed position could be reached, HIH's membership was terminated at the council's July board meeting.

He said a revision of the council's rules had included a provision enabling the expulsion of members who did not provide data and that had been considered essential, since a non-contributing member would have the advantage of other members' data without providing its own.

It was also essential that data was available, since the council was effectively the regulator in a self-regulatory environment.

Mr Ryan expressed surprise at HIH's objections to the stance on renationalisation of workers compensation, given the overwhelming support from insurers and business for its position.

HIH had also renewed its membership after the council's position had been made public.