The Victorian Managed Insurance Authority (VMIA) is to introduce a new builders’ warranty system next July, and will no longer use QBE as its agent.

The VMIA says the online system will reduce duplication that occurs with the current paper-based model.

“Under the new approach, builders will be able to purchase and manage [builders’ warranty insurance] online, directly from a panel of distributors,” it said.

“It is expected that, in time, the new model will help keep… premiums down.”

The VMIA is inviting expressions of interest from companies interested in becoming distributors.

It says builders will still have the option to work with insurance brokers.

“These changes will deliver better domestic building insurance services for homeowners and builders in Victoria, making sure the process is clear and cutting red tape,” Finance Minister Robin Scott said.

QBE has confirmed to insuranceNEWS.com.au that from July 1 it will no longer act for the VMIA, but has declined to comment further.