Underwriting agency Dexta has withdrawn completely from the NSW and Victorian builders’ warranty market, leaving the market to Royal & SunAlliance and forcing the two states to speed up their review of the warranty systems. With a market share of about 50%, Dexta’s departure is a savage blow to builders. High-rise builders in particular are looking for a government lead because R&SA also withdrew from that market segment last week.

Dexta MD Ashraf Kamha has been expressing concern for several weeks about the market’s viability. The Dexta withdrawal will force some action from the two governments, possibly as early as the end of this week.