"It was aprotectionracket just like those run 40 years ago in London's nightclubs, " says Michael Deats, detective superintendent of the U.K.'s National Hi-Tech Crime Unit.
Opposition leader Tony Abbott accused Ms Gillard, who initially stood by Mr Thomson, of running a"protection racket" for him, says the BBC's Nick Bryant in Sydney.
At the time the consumer organisation Citizens Advice dubbed the sale of PPI policies a"protection racket", saying they were often too expensive and failed to provide the level of cover that customers thought they were getting.