NSW state insurer icare has “insourced” homeowner claims management in the Home Building Compensation Fund, taking over from Gallagher Bassett, which had performed the role since 2017.

The state government is reviewing the loss-making HBCF scheme, and industry regulation expert Bronwyn Weir is due to issue a final report by February 24.

The HBCF aims to provide a safety net for NSW homeowners faced with incomplete or defective building work. Licensed contractors taking on residential work over $20,000 must obtain cover through the HBCF, and homeowners can be compensated if losses arise from a builder dying, disappearing, becoming insolvent or having their licence suspended.

icare says bringing claims handling in-house will create a more efficient, personalised and streamlined experience, giving it full oversight of every step.  

The move is intended to provide long-term stability and improve outcomes.

“We are excited about the future and the chance to further strengthen our partnership with the communities we serve,” icare HBCF GM Parthena Elias said.

Claims management is moving over progressively so that by April, all new and existing claims will be managed in-house.  

“We are committed to working closely with all stakeholders, including Gallagher Bassett, to ensure homeowners and stakeholders receive the support they need during this period,” icare said.

It says claims manager Gallagher Bassett’s work has “laid the groundwork for this operational change”.

Geniere Aplin, most recently the head of EML Solutions, will take over as icare CEO next month following the resignation last year of Richard Harding.