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Insurer stays, and supports tougher building rules

CGU says it will continue to offer insurance in areas of Victoria affected by the recent bushfires.

As the death toll climbed to 208, the insurer also pledged to support the drive for stricter building standards enabling great protection from fire.
 
CGU CEO Duncan West said the company supported communities affected by Cyclone Larry, the Ash Wednesday fires “and every other catastrophic event that has happened during nearly 150 years of operation, and we are here for customers who are enduring this latest tragedy”.

Mr West says insurance is about pricing risk, and CGU is very keen to work with the Victorian Government to review lessons learnt from Black Saturday and help communities reduce risk.

“For example, we support the introduction of tougher building standards in bushfire-prone areas that provide a higher degree of fire protection,” he said.

“A stricter building code will likely increase construction costs in the bushfire-affected areas. CGU customers whose homes have been lost or damaged due to the bushfires will be covered for compliance with any new planning regulations.”

The Victorian Government appears to be going it alone with stringent new building rules for homes to be rebuilt and new homes in fire-prone areas.

Changes in the Building Code of Australia for bushfire-prone areas are set to be implemented nationally next month.

However, fire authority representatives from around Australia are reportedly refusing to support the revised code, saying its “flame intensity levels” are too low.