The Insurance Council of Australia (ICA) has today called for swift further action to restore confidence in the troubled building industry, after federal and state ministers pledged to work together to deal with the professional indemnity (PI) insurance impasse.

Industry Minister Karen Andrews and her state counterparts also agreed at today’s Building Ministers’ Forum in Sydney to take up all 24 recommendations in the Shergold-Weir report on improving compliance and enforcement nationally.

“The ministers were aligned in seeking a positive outcome. Nonetheless the blame game has to end, and governments must now prioritise the enactment of this national approach,” ICA CEO Rob Whelan said.

ICA took part in the forum where it proposed a formal role for the insurance industry, including permanent representation on the Australian Building Codes Board (ABCB), which has been tasked with overseeing the implementation of the Shergold-Weir report.

Representation on the ABCB would ensure insurance perspectives are heard.

“Though today’s agreement is generally positive, insurers remain concerned any delays in implementing the Shergold-Weir recommendations and action being taken by the ABCB will further undermine public and industry confidence in the construction sector,” Mr Whelan said.

“The ICA is willing to engage with governments and regulatory authorities to ensure the restoration of confidence and stability in the construction industry is achieved as soon as possible.”

The near-collapse of the PI insurance market for certifiers and surveyors, where exclusion-free policies are no longer available, was among the major issues discussed at the forum.

NSW and Queensland will oversee the collaboration, which involves a PI consultation paper setting out alternative insurance options and a pathway for professional standards.

Outcomes of the consultation will be submitted to the forum by September.

“The building ministers called on insurers to meet their existing obligations and lift their exclusions on professional indemnity insurance following this strong action by states and territories,” a post-forum communique says.

Premiums for PI have shot up by as much as 500% in some cases and insurers are demanding broad exclusions and massive excesses to reduce their exposure, according to the Australian Institute of Building Surveyors (AIBS).

“There is only one thing that should be on their agenda… the current crisis with PI insurance and what steps they intend to take to fix it,” AIBS CEO Brett Mace said in a statement yesterday.