CGU and subsidiary Strata Unit Underwriters (SUU) are to fund risk assessments across all residential strata properties they insure in north Queensland, before reviewing premiums.

SUU will lead the project, which starts this month. A specialist building consultant will report on construction type and method, exposure to wind-driven rain and other hazards and defects.

CGU says it is difficult to estimate possible premium reductions, but calculations suggest some owners could benefit from falls of up to 25%.

CEO Peter Harmer says the aim is to improve buildings’ resilience to severe weather to enable customers to receive sustainable premium cuts.

“We are exploring options to further assist policyholders, so repairs can be undertaken at the earliest opportunity and our customers can experience the full benefits of this work,” he said.

SUU is working with a major financial institution to arrange finance for body corporates to make repairs.

A CGU spokesman told insuranceNEWS.com.au it is too early to say whether the assessments will have an impact on capacity to the north Queensland market.

Strata owners will receive recommendations on how to improve properties’ resilience and risk ratings, and CGU will share the assessment findings with governments, councils and other stakeholders to improve knowledge about risk, mitigation and the impact on premiums.

The program ties into CGU parent IAG’s work on resilience and the Insurance Council of Australia’s partnership with James Cook University to design an engineering inspection scheme for north Queensland strata properties.