❓ Question addresses concerns about delays and increased costs in home indemnity insurance following the HIH Insurance collapse. The Minister outlines actions taken, including approving new insurers, a rescue package, and a review of the insurance scheme.
AnsweredQoN 363Legislative Council
QuestionView source ↗
(1) Is the minister aware of the serious concern being expressed in some sections of the building industry relating to the delays being experienced in the processing of applications for home indemnity insurance by government-approved providers of this insurance and the significant increase in premiums and prudential requirements for the issuing of home indemnity insurance policies? (2) What action has the Government taken to address these important issues affecting the building industry, and what further action can the Government take to alleviate these problems? Hon N.D. GRIFFITHS
AnswerView source ↗
I thank the member for some notice of this question. (1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
(2) What action has the Government taken to address these important issues affecting the building industry, and what further action can the Government take to alleviate these problems? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
I thank the member for some notice of this question. (1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
(1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
(2) What action has the Government taken to address these important issues affecting the building industry, and what further action can the Government take to alleviate these problems? Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
Hon N.D. GRIFFITHS replied: I thank the member for some notice of this question. (1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
I thank the member for some notice of this question. (1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
(1)-(2) The Minister for Consumer and Employment Protection is aware that, following the financial collapse of HIH Insurance, serious problems have been experienced by some builders in obtaining home indemnity insurance. The collapse occurred despite the Australian Prudential Regulation Authority’s having responsibility for overseeing the nation’s insurance industry. The Department of Consumer and Employment Protection has sent a questionnaire to all registered builders to determine the exact extent of the problem, including the cost of premiums and prudential requirements. Since the collapse of HIH, the minister has approved two new insurers to operate in the market. Although the rush of new home indemnity insurance applications created administrative problems for all insurers, reports indicate that processing delays caused by the bottleneck are now easing. On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
On 17 July 2001, the Government announced a rescue package for home owners holding home indemnity insurance certificates issued on behalf of HIH. The package contained benefits for builders in that it clarified that there was no need for them to obtain alternative insurance before continuing with their work. The rescue package was also intended to be of assistance to those builders who had lodged an application for a building licence prior to 15 March 2001 with a certificate of insurance issued on behalf of HIH Insurance but who had been unable to obtain alternative cover. The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
The minister has also reopened the statutory review on the home indemnity insurance scheme and established a forum comprising key building and insurance industry players to look at all short and long-term options for home indemnity insurance. The forum will report to the minister by the end of this month.
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