Brokerages providing distribution services for Victoria’s builders’ warranty insurance have hailed the overhaul of the state-administered system, saying it will simplify the process and cut costs.

As reported last week by insuranceNEWS.com.au in a Breaking News bulletin, six brokerages have been appointed to act from July 1 as the interface between the Victorian Managed Insurance Authority (VMIA), and builders’ brokers.

Under the previous system, QBE acted as an agent for the VMIA.

The new panel of distributors comprises Arthur J Gallagher, Bovill Risk & Insurance Consultants (BRIC), CCM Insurance Group, HIA Insurance Services, Insurance House and MBA Insurance Services.

“We are not making wholesale product changes, but rather introducing a new process and system,” VMIA says in its announcement of the change.

An online portal called BuildVic will streamline purchasing and managing domestic building insurance, giving builders access via multiple devices and providing faster and easier access to certificates and documentation.

The panel of distributors will give builders access to the BuildVic portal and act as a point of contact for building insurance-related matters.

Arthur J Gallagher’s Melbourne-based Area Director Emma Keegan says the brokerage has a solid track record and capability in the field, and the new Victorian process offers improvements while making no “material changes” to the product.

“The change brings with it a number of benefits for the customer – from increased simplicity and reduced premiums, through to the ease of getting cover through their web platform, including self-service on certificates and letters of eligibility,” she told insuranceNEWS.com.au.

Brokers that are not a domestic building insurance distributor will still be able to manage the insurance of behalf of their clients, but the process will change.

“Brokers can work with their client to support them in choosing a distributor, as well as gaining consent from them on purchasing and managing their domestic building insurance in future,” the VMIA says.