❓ Hon. Kate Doust questions the Minister for Commerce regarding home indemnity insurance, including cabinet discussions, payments to QBE, and tendering processes. The Minister provides detailed answers, highlighting the lack of private insurer interest.
AnsweredQoN 346Legislative Council
QuestionView source ↗
HOME
INDEMNITY INSURANCE
346. Hon KATE DOUST to the
Minister for Commerce:
(1) Can the minister advise on how many
occasions the issue of home indemnity insurance has been before cabinet since
March 2013?
(2) On what dates
since March 2013 did the issue of home indemnity insurance go to cabinet?
(3) Under the state's home indemnity
arrangements with QBE, how much has been paid to QBE since the new arrangement
came into force from 1 November 2013 for —
(a) administration; and
(b) payout of insurance claims?
(4) Was the provision of home indemnity
insurance under the new arrangements put to open tender; and, if not, why not?
INDEMNITY INSURANCE
346. Hon KATE DOUST to the
Minister for Commerce:
(1) Can the minister advise on how many
occasions the issue of home indemnity insurance has been before cabinet since
March 2013?
(2) On what dates
since March 2013 did the issue of home indemnity insurance go to cabinet?
(3) Under the state's home indemnity
arrangements with QBE, how much has been paid to QBE since the new arrangement
came into force from 1 November 2013 for —
(a) administration; and
(b) payout of insurance claims?
(4) Was the provision of home indemnity
insurance under the new arrangements put to open tender; and, if not, why not?
AnswerView source ↗
I thank the honourable member for some notice of this question.
(1) There were four occasions.
(2) On 24 June 2013, 28 October 2013, 11 November 2013 and 6 October
2014.
(3) The following amounts have been paid —
(a) administration, $14 256 665.96.
� (b) payout of insurance claims,
$950 707.22.
(4) No. In its draft report of April 2013
and final report of September 2013, the Economic Regulation Authority confirmed
that it had not elicited a competitive supply response from private insurers.
In November 2013, the Building Commission wrote to the major insurance
companies in Australia, including those that have previously offered home
indemnity insurance cover, to seek their views on whether they would be willing
to provide cover under the models recommended by the ERA. All insurers stated
that they were not willing to underwrite HII under any circumstances. In June
2014, the Insurance Commission of Western Australia sought interest from the
private insurance market based on the potential for reduced scope of HII cover.
Private insurers again expressed their disinclination to re-engage in HII even
with the reduced scope of cover.
(1) There were four occasions.
(2) On 24 June 2013, 28 October 2013, 11 November 2013 and 6 October
2014.
(3) The following amounts have been paid —
(a) administration, $14 256 665.96.
� (b) payout of insurance claims,
$950 707.22.
(4) No. In its draft report of April 2013
and final report of September 2013, the Economic Regulation Authority confirmed
that it had not elicited a competitive supply response from private insurers.
In November 2013, the Building Commission wrote to the major insurance
companies in Australia, including those that have previously offered home
indemnity insurance cover, to seek their views on whether they would be willing
to provide cover under the models recommended by the ERA. All insurers stated
that they were not willing to underwrite HII under any circumstances. In June
2014, the Insurance Commission of Western Australia sought interest from the
private insurance market based on the potential for reduced scope of HII cover.
Private insurers again expressed their disinclination to re-engage in HII even
with the reduced scope of cover.
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