NSW state-owned insurer icare has reduced the size of its Home Building Compensation Fund (HBCF) panel to nine distributors after completing a tender process.

The tender was contested by 20 respondents who were part of an existing panel of 23 providers. The insurer in 2017 reduced the size of the panel from more than 100 participants.

“This new panel is intended to provide a better balance of portfolio opportunities for distributors and improved service for builders and homeowners,” icare said last week.

“Distributors on the panel will also need to be more transparent on fees and charges, enhancing competition for the benefit of builders and homeowners.”

The distributors are Coverforce Insurance Brokers, Don Hutton – The Builders Insurance Broker, Finsura Insurance Broking, HIA Insurance Services, Insurance House Group, Master Builders Insurance Brokers, MBA Queensland, Savill Hicks and Willis Towers Watson.

Contracts for the new panel will start on April 30 and are for an initial two years, followed by two one-year extension options.

icare is the sole provider for the HBCF, which provides last-resort cover for defects in new low-rise properties when owners are otherwise unable to gain compensation.

“As with previous HBC distributor tenders, some unsuccessful distributors may wish to enter partnership or referral agreements with successful brokers,” icare says. “These can smooth the transition process, as long as the receiving distributor is compliant with all their obligations under the new deed.”

If no new distributor arrangements are advised to HBCF by the end of this month, icare will work with builders to ensure they are assigned to a new distributor and make the system changes.