|hih insurance scandal||1.51||0.8||9691||74|
In some instances there are clear cases of complacency on the auditors' part or outright negligence on the part of the auditor.When did HIH Insurance go out of business?
THE (Sudden) COLLAPSE • The March 2001 collapse of HIH Insurance sent shockwaves through the Australian business community. The country’s second-largest employer, HIH was at the tail-end of a major acquisition spree. With an estimated $8.1bn asset base at the end of 2000, HIH was widely perceived as an extremely robust and reliable company…Why did HIH Insurance Group fail in Australia?
The Australian Competition and Consumer Commission revealed that the failure of HIH Insurance Group had led to constant insurance premium hikes. After this event, most of their competitors, as well as new insurance companies in Australia, provided insurance coverage at more reasonable rates.Who was the CEO of HIH in 1998?
They concealed this by under-reserving (which boosts profits) and using "financial reinsurance" contracts to turn losses into gains. Williams, the chief executive, distracted the investment community with a string of takeovers, culminating in paying $300 million for Rodney Adler's FAI Insurances in 1998.