The Insurance Council of Australia (ICA) has welcomed last week’s report on the effectiveness of the Building Code of Australia.

It says the recommendations of the Productivity Commission inquiry into building regulations will mean greater protection for property-owners.

In the past the code concentrated on protecting lives, and ICA believes there was insufficient focus on protecting property – particularly fire protection.

Executive Director Alan Mason says weaknesses in the code led to state governments introducing their own variations, with resulting inconsistencies and confusion. “ICA welcomes the recommendation that the code’s provisions have to be strengthened and applied uniformly by all governments.”

Sprinkler systems have been a cause of concern, as standards were moving away from the existing Australian standard.

“Insurers underwrite billions of dollars of property in this country and they need to be confident that the risk is insurable,” Mr Mason said. “They need to be satisfied that the buildings they provide cover for have been built to a standard which resists, as much as possible, damage from events such as fire, hail and cyclones.”

ICA says the recommendations should be adopted as soon as possible.