HIH Insurance

About HIH Insurance

HIH Insurance collapsed in March 2001 in what was then the largest corporate failure in Australian history. HIH had approximately 8 billion in assets. The company had expanded rapidly through acquisitions and underpriced insurance policies to gain market share. CEO Ray Williams and director Rodney Adler were convicted of corporate crimes. Williams was sentenced to 4.5 years. Adler was sentenced to 4.5 years. The Australian government established a Royal Commission to investigate. The commission found systematic failures in corporate governance, auditing, and regulatory oversight. The collapse led to reforms including the Australian Prudential Regulation Authority taking over insurance regulation. Policyholders faced significant losses, particularly in the building and construction industry.