IAG is getting ready to step back into the turgid waters of builders’ warranty insurance in NSW, with Group Executive Intermediary Business Bob Wagstaffe last week praising the recent Grellman report.

Claiming super-accountant Richard Grellman’s recommendations could lead to the creation of an efficient, effective and viable regulatory framework, he said: “These reforms will remove the key barriers to IAG entering the home warranty insurance market in NSW.”

“We have been very supportive of the positive steps taken by the Carr Government over the past 18 months to find a sustainable legislative framework for home warranty insurance that provides consumers with affordable protection,” Mr Wagstaffe said. “The challenge now is to maintain this momentum and make it a reality.”

The Grellman recommendations include financial soundness tests for builders and a more rigorous and independent building certification process.

Encouraging other states to follow the NSW model, Mr Wagstaffe added: “It is in everyone’s interest to see harmonisation of state schemes in the long term.”