Eric Insurance - Voluntary Administration

Eric Insurance, a general insurer of motor vehicle policies, entered voluntary administration on 28 July, with Shaun Fraser and Kathy Sozou of McGrathNicol appointed administrators.

In October 2023, the company entered run-off voluntarily. It later said it was well positioned to manage the run-off until 2032 (although no new policies have been underwritten since June 2024) while it explored options to sell the business or transfer client accounts to another provider. However, in January 2024, the company’s website was hacked by cybercriminals who were able to access almost 15,000 customers’ personal information.

The administrators have advised that they intend to continue trading the business and assessing claims whilst undertaking an assessment. Claims will not be paid in the ordinary course during the initial phase of the administration while this assessment is taking place.

The Australian Prudential Regulation Authority has also sought a winding-up order for the company, with the hearing set for August 12.