Home warranty premium-to-claim ratio just 7%
The Senate inquiry into home warranty insurance has heard the consumer protection policy pays out just 7% of the revenue it earns from premiums in NSW.
The Sydney Morning Herald reports that since July 2002, just $16 million of $225 million collected in premiums was paid to consumers.
Normally, insurers return between 65% and 80% of premiums on consumer protection policies.
The NSW Government Home Warranty Scheme Board said due to the “long-tail” nature of claims it is too soon to analyse the data.
The inquiry is due to report to the Senate in October.
The Sydney Morning Herald reports that since July 2002, just $16 million of $225 million collected in premiums was paid to consumers.
Normally, insurers return between 65% and 80% of premiums on consumer protection policies.
The NSW Government Home Warranty Scheme Board said due to the “long-tail” nature of claims it is too soon to analyse the data.
The inquiry is due to report to the Senate in October.