Builders Indemnity Insurance Fund

In reply to Mr COWDREY (Colton) (29 June 2023). (Estimates Committee B)

The Hon. S.C. MULLIGHAN (Lee—Treasurer): I have been advised the following:

1. What is the average premium for builders under the builders indemnity insurance this financial year, and has it been finalised for next?

The average premium for builders per project was $1,240.45 in 2022-23. A breakdown by turnover limit is provided below.

The average premium for builders with a turnover limit above $10 million is lower, because the majority of builders in this category are subject to fixed rate premiums due to the volume of building work being undertaken.

SAFA regularly reviews all premium categories, including fixed rates, in accordance with the expected future cost of claims.

Premiums are actuarially assessed on an annual basis.

The average premium for builders per project in the 2023-24 financial year is estimated to be $1,281, however this number may be higher or lower, depending on the volume of building work undertaken.

2. Has there been an increase in instances of builders not taking out cover notes this year?

SAFA is not aware of an increase in the number of uninsured projects in the 2022-23 financial year.

A recent claim event identified six projects being built by a developer that were completed without insurance. Insurance for these projects was issued to the developer retrospectively, before the building company was liquidated.

3. If you have those numbers (for small projects) are you able to provide them for the previous five financial years, including this one?

This data is not held by SAFA or QBE as it is the role of local government and accredited professionals through the planning process to ensure that the insurance is in place prior to commencing building work, in accordance with the Planning, Development and Infrastructure Act 2016.