CGU has cut premiums for property-owners in north Queensland by up to 29% through a strata building resilience project launched in April.

The project aims to help customers assess a variety of risks including building construction types, exposure and resilience to direct wind-driven rain and other hazards.

More than 3000 customers have enjoyed average annual premium savings of 11% or $200 after the project completed its first 100 building assessments, CGU CEO Peter Harmer said last week.

“We’ve been able to offer insurance premium reductions of up to 29% for our residential strata customers in north Queensland through this project,” he said. “That’s tangible premium relief where it’s needed.”

To date most customers have received the insurance reduction without the need to commit to additional repairs.

Eighteen of the inspected buildings required some repairs to secure the reduction, and CGU has offered to deliver the premium reduction on policy renewal, ahead of the work being completed.

CGU’s wholly owned subsidiary Strata Unit Underwriters (SUU) insures more than 500 residential strata properties in north Queensland and is overseeing the project’s implementation.

SUU expects to have offered this service to all CGU and SUU residential strata customers in the region by next April.

The assessments are carried out by specialist building consultant Sergon. Following completion of each assessment, CGU revisits its pricing with a view to reducing its premiums where possible.

The insurer says any recommendations from the assessment on repairs that could be made to improve the property’s resilience and risk rating are provided to the strata property-owners and managers.

When the strata property owner or manager has agreed to make the required property improvements, CGU and SUU arrange a premium reduction on renewal of the policy.