QBE exit S.A. builders
The South Australian government is looking for a new insurer to cover home builders who face losses if their building companies close down.
QBE Insurance has advised the government it will be withdrawing from the building indemnity insurance market from July.
The insurance scheme protects home owners against losses from the insolvency, death or disappearance of their builder up to a maximum of $80,000.
Attorney-General John Rau said QBE had indicated it was no longer viable for it to remain in the market given the increased number of insolvencies involving building companies.
“While the state government understands QBE’s rationale for deciding to exit the market, it is nevertheless disappointed that this will be happening at a difficult time for the building industry,” Rau said.
Building indemnity insurance is compulsory under legislation and Rau said the state government was committed to working with industry experts to develop a solution.
“There will be an insurance product available,” he said.
QBE has agreed to honour any policies signed before the end of June.