Hon. Kate Doust inquires about discussions on home indemnity insurance at COAG and potential alternatives to the current scheme. The Minister acknowledges the issue and ongoing efforts to attract private insurers back into the market.

AnsweredQoN 1144Legislative Council
Asked
18 October 2016
Portfolio
Commerce

QuestionView source ↗

HOME INDEMNITY INSURANCE
1144. Hon KATE DOUST to the Minister for
Commerce:
I refer to home builders and
indemnity insurance.
(1) What
discussion took place at the Council of Australian Governments or the relevant
ministerial councils about building indemnity insurance?
(2) Is the
government evaluating any alternatives to the home indemnity insurance scheme;
and, if yes, what alternatives are being considered?

AnswerView source ↗

I thank the honourable member for
the question.
(1)–(2) I
cannot speak for what discussions have been had between the Premier and other
first ministers at the COAG level. In the past there has been some discussion
at the level of ministers responsible for building matters regarding home
indemnity insurance. Some jurisdictions in Australia do not have home indemnity
insurance, such as the Northern Territory, while others have differing schemes.
What is uniform amongst those that do have schemes is that private insurers
have now left the market, which has happened in Western Australia. Over the
last several years, the government has been exploring means of having private
insurers re-enter the market rather than the state underwriting all the risk.
So far that has proved to be unsuccessful. However, work is continuing in that
regard to explore options to ensure that the Western Australian government and
hence Western Australian taxpayers do not continue to underwrite the risk of
home indemnity insurance, and that includes what legislative amendments might
be necessary to change the regime to give appropriate coverage to consumers and
protection for home owners while at the same time allowing the product to be
more attractive to private insurers re‑entering the market.

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