The sole private provider of Licensed Builder Warranty Insurance in Victoria has announced it will pull out of the market by the end of the year.
In a statement, Calliden Insurance said: “Claims developments along with potential uncertainty associated with the Victorian Domestic Building Consumer Protection Reform Strategy has resulted in the product being unsustainable for a private insurer.”
The state-run Victorian Managed Insurance Authority (VMIA) also provides Builder Warranty cover, underwriting QBE to issue the policies.
Calliden Agency Services Group Executive Mike Hooton says Calliden actively pursued the possibility of operating as an agent on behalf of the VMIA but it had become clear this was not likely in the foreseeable future.
“The arrangements we have in other states including agent of Sicorp in NSW and the recently announced 100% quota share arrangement with the South Australian Government Financing authority remain in force,” he says.
Calliden will continue to underwrite and distribute Owner Builder Warranty Insurance in Victoria through AOBIS.