The Australian Consumers’ Association and the Australian Shareholders’ Association are calling for an inquiry into what they call the failure of the Australian Prudential Regulation Authority to prevent the collapse of HIH.

HIH was placed into provisional liquidation on March 15 with losses of more than $800 million.

The groups are the latest to join the Financial Services Consumer Policy Centre in lobbying financial services minister Joe Hockey to get the Federal Government to review APRA's role in the collapse and of regulatory standards.

The groups are also calling for protection of consumers facing large losses as a result of the collapse of HIH through direct intervention from Hockey.

The Australian Consumers' Association (ACA) has labeled the collapse of HIH as "unprecedented", and is the most damaging failure of a general insurance company in Australia. ACA finance policy officer Louise Petschler says the failure of APRA together with the impact of the losses on policy holders makes an enquiry essential.

For its part, APRA continues to stand by its assertions that the criticism of its role in the collapse of the insurer has been "inaccurate". It says in a statement that its 1999/2000 audit issued last September "showed [HIH] comfortably meeting statutory solvency requirements", which it believes did not require any intervention from the regulator.