Program 1.3: Support for markets and business
Program objective
The objectives of program 1.3 are to:
- make payments in respect of insurance claims arising from the residual Housing Loans Insurance Company Limited portfolio. The Housing Loans Insurance Company Limited pre-transfer contract portfolio will be managed to ensure all liabilities arising from claims under this portfolio are met and any related debts are recovered; and
- make payments of assistance to eligible HIH insurance policy holders under the HIH Claims Support Scheme. Work is now focused on finalising remaining claims so assistance can be paid, and the claims portfolio wound up.
Program deliverables
The program deliverables are:
- payments of claims arising from the Housing Loans Insurance Company Limited old book and assistance under the HIH Claims Support Scheme are made according to agreed schedules.
Key performance indicators
The key performance indicators are:
- payments of claims arising from the Housing Loans Insurance Company Limited old book and assistance under the HIH Claims Support Scheme are accurately determined and are made according to agreed schedules
Analysis of performance
Payments made from the Housing Loans Insurance Corporation Limited met the cost of administering and meeting the Commonwealth’s obligations from ongoing management of the residual portfolio of lenders’ mortgage insurance contracts.
Payments made to the HIH Claims Support Scheme met the costs of operating the scheme and providing assistance to eligible policyholders. The Treasury continues to work closely with the HIH administrators, McGrathNicol+Partners, and the contracted claims manager, Gallagher Bassett Services Pty Ltd, to settle remaining claims. Since the scheme started in July 2001, to 30 June 2010, it has paid $656 million in assistance to 10,865 eligible policyholders.
All payments were accurately determined, in accordance with industry best practice and government regulations, and made in a timely manner.