A builders group has branded the Victorian builders’ warranty insurance (BWI) scheme a farce after insurer Calliden announced it would remain in the market.

Builders Collective of Australia National President Phil Dwyer says the decision is “staggering” and contradicts the Victorian Government’s stated reason for taking over the scheme.

The former Brumby Government took over in March, saying the market for BWI scheme had become useless for most in the industry.

This followed the withdrawal of Vero, CGU and Lumley from the market and the appointment of QBE in June as the sole provider of BWI under a state-underwritten program.

But Calliden says the market has stabilised and there is a continued demand for an alternative insurer to QBE.

Mr Dwyer told insuranceNEWS.com.au the Calliden decision contradicts the former government’s assertion that the market was no longer viable and needed to be taken over.

“Now Calliden comes along and says it’s too good,” he said.

Calliden Group Executive Marketing and Distribution Mike Hooton told insuranceNEWS.com.au the company didn’t require State Government approval to stay in the market and has advised them of its intentions.

“We will maintain a working dialogue with the Victorian Government on all matters in relation to the domestic building insurance market,” he said.