Eric Insurance Limited, a provider of add-on motor vehicle insurance products, is advancing through voluntary administration as it continues its exit from the Australian general insurance market.
The Australian Prudential Regulation Authority (APRA) has confirmed that the voluntary administrators will convene a meeting of creditors on Sept. 16.
At this meeting, creditors will vote on a proposed deed of company arrangement (DOCA), which is being considered as an alternative to liquidation.
Eric Insurance announced its intention to withdraw from the general insurance sector in July 2023, with the cessation of new policy issuance completed by June 2024.
APRA has maintained increased supervision during this period, working with both the insurer and its administrators to explore options for an orderly exit and to safeguard the interests of policyholders.
“APRA is closely monitoring Eric’s withdrawal from the insurance industry to achieve the most favourable outcome for policyholders,” the regulator said.
Stakeholders can access information about the administration process through the administrators and ericinsurancelimited@mcgrathnicol.com.
In an August update to creditors, administrator Kathy Sozou detailed developments in the administration process.
She noted that the Federal Court of Australia issued orders on Aug. 12 that postponed the period for convening creditor meetings.
“The meetings of creditors have been deferred by the court to enable the winding up application lodged by the Australian Prudential Regulation Authority against the company, to be heard on 29 August 2025,” Sozou said.
A separate circular to policyholders addressed common questions regarding the administration and the status of insurance policies.
According to the administrators, Eric Insurance has been in voluntary administration since July 28, and the future of the company will depend on the outcome of the Federal Court proceedings.
Policyholders with active policies were informed that coverage remains in effect unless they choose to cancel.
Claims can still be submitted and will be processed by the insurer’s claims team, with the administrators overseeing the process.
However, any approved claims will be treated as unsecured claims within the administration, and immediate payment should not be expected.
“Claims submitted by policyholders are still being reviewed and assessed by Eric Insurance’s claims team in accordance with the terms of the relevant insurance policies and applicable laws. Once reviewed, claims are referred to the administrators for approval. If your claim is approved, please note that no immediate payment will be made,” the administrators said.
Policyholders were also advised to ensure all documentation is complete and to expect possible delays in claims assessment.
The administrators’ current approach is to continue managing existing policies while evaluating the best path forward for policyholders and creditors.
Expiring policies will not be renewed, and policyholders are encouraged to seek alternative coverage as needed.
Further updates will be communicated following the Federal Court hearing and as the administration process progresses.
