The South Australian market for Building Indemnity Insurance is being consolidated under QBE from 1 July 2017 with significant changes to the market.
MBA Insurance Services will continue to operate as an authorised broker in a more controlled market. We urge you to contact us now to ensure the changes do not affect your access to Builders Indemnity Insurance.
What are the changes?
The State Government’s financing arm, SAFA, has made the following changes applicable from 1 July 2017:
- QBE will become the only insurer of Building Indemnity Insurance in South Australia.
- The number of brokers who directly access Building Indemnity Insurance through QBE will be limited to those brokers that meet SAFA’s new criteria.
- Brokers may charge builders a fee for eligibility and distribution of Building Indemnity Insurance.
- The indemnity limit will increase from $80,000 to $150,000 for policies issued on or after 1 July 2017.
MBA Insurance Services is one of the few brokers to already be approved as an Authorised Broker for Building Indemnity Insurance.
How do you transition to QBE?
There are two ways to move your Building Indemnity Insurance facility:
- Move now and apply for a facility with QBE through their normal application process; or
- Move to QBE from 1 July on the condition a Review is conducted within three months.
What to do if my Broker can no longer manage my Building Indemnity Insurance?
You will need to sign a Letter of Appointment specifically for your Building Indemnity Insurance to move to MBA Insurance Services. Alternatively, your current Broker can place through MBA Insurance Services but there may be extra costs involved. We recommend confirming whether additional fees apply.
Should you select MBA Insurance Services to manage your Building Indemnity Insurance and you are with RBUA you still need to go through one of the above two steps. If you are already with QBE and need to change to MBA Insurance Services please be mindful it can trigger a Review of your facility especially where you haven’t been reviewed in the last two years.