IPART releases Final Report on Home Building Compensation scheme

The Independent Pricing and Regulatory Tribunal (IPART) has recommended a range of changes to the design, regulation and administration of the home building compensation (HBC) scheme in its Final Report, following a review.

The recommendations are intended to:

  • improve oversight of building work and dispute resolution processes for homeowners;
  • change regulatory requirements to improve the operation of the scheme and facilitate new providers entering the market;
  • provide clearer information about insurance requirements, builder eligibility and the overall performance of the scheme; and
  • enhance icare’s administration of its HBC insurance products.

NIBA CEO Dallas Booth noted the schemes long and difficult history, and the many issues remaining with the number and cost of claims against the scheme, the quality of building work and the level of benefits provided to property owners.

“Brokers have played an important role in this scheme, assisting builder clients to meet their HBCF insurance obligations,” he said.

“The information that is collected, analysed and presented on behalf of builder clients is complex and detailed.

“There may be some building firms who have the competence and capacity to do this work, but NIBA believes the overall position is that insurance brokers play an important role in gathering information and providing it in a manner that is accurate and sufficient for HBCF purposes.

“We therefore believe there is an important ongoing role for insurance brokers in this scheme,” he concluded.

Read the full report here.