Don’t change home warranty system, says NIBA
The National Insurance Brokers Association (NIBA) has warned a Senate inquiry into home warranty insurance against changing the way the policy is distributed.
CEO Noel Pettersen says in a submission to the inquiry that allowing state and territory governments to impose individual regulations on the distribution of insurance would disrupt the successful single regulation arrangement, which NIBA believes is “working well”.
“If there is seen to be a need for special regulatory provisions for home warranty insurance distribution, NIBA would prefer that was encompassed in the Corporations Act and applied nationally,” he said.
He says the only possible change NIBA regards as necessary is “some additional disclosure for the homeowner who is a third-party beneficiary of the insurance”.
NIBA’s submission focuses only on the distribution of the policy and not the insurance policy itself or the way states regulate insurance companies.
In recent months privatised home warranty insurance has come under attack for making unreasonable financial demands of builders and failing to protect homeowners.
Some individual distribution arrangements have also been criticised, but insurers defend the policy as cost-effective “last resort” insurance.
The inquiry will report by October 16.
CEO Noel Pettersen says in a submission to the inquiry that allowing state and territory governments to impose individual regulations on the distribution of insurance would disrupt the successful single regulation arrangement, which NIBA believes is “working well”.
“If there is seen to be a need for special regulatory provisions for home warranty insurance distribution, NIBA would prefer that was encompassed in the Corporations Act and applied nationally,” he said.
He says the only possible change NIBA regards as necessary is “some additional disclosure for the homeowner who is a third-party beneficiary of the insurance”.
NIBA’s submission focuses only on the distribution of the policy and not the insurance policy itself or the way states regulate insurance companies.
In recent months privatised home warranty insurance has come under attack for making unreasonable financial demands of builders and failing to protect homeowners.
Some individual distribution arrangements have also been criticised, but insurers defend the policy as cost-effective “last resort” insurance.
The inquiry will report by October 16.