Something finally went right for the builders’ warranty market last week when major reforms announced in March were passed through the Lower House of the NSW Parliament. It’s a move that Dexta MD Ashraf Kamha hopes will settle the market.

Both the NSW and Victorian governments are banking on the new reforms providing a firm foundation for current negotiations with insurers regarding the future operation of the home warranty insurance scheme.

“If claim numbers and costs fall and a new actuarial pattern emerges and is maintained, insurers will be able to review and reframe premiums and security requirements for builders,” he said.

NSW Fair Trading Minister John Aquilina said the reforms will provide substantial protection for homebuyers, a healthy building industry and a viable market for insurers.