CGU Insurance today announced a strata building resilience project to address insurance
affordability in North Queensland.
The project will commence in mid April and focus on improving building resilience to severe
weather so that customers can receive sustainable premium reductions.
CGU’s wholly-owned subsidiary Strata Unit Underwriters (SUU), which currently insures a
substantial number of residential strata properties in North Queensland, will oversee its
CGU Chief Executive Officer Peter Harmer said; “We understand and empathise with the
needs and interests of our customers and North Queensland communities, and we are
committed to addressing the concerns they have raised about insurance affordability.”
“Our project is an important step forward in addressing this issue. I note the Federal
Government’s concerns about the cost of insurance in North Queensland. CGU is committed
to working together with governments and communities to address this important issue.”
Under the project CGU will fund building risk assessments to be undertaken by Sergon, a
specialist building consultant, across all of the residential strata properties SUU and CGU
insure in North Queensland. The assessments will cover risks such as building construction
type and method, exposure to direct wind-driven rain, as well as other hazards and possible
Following completion of each assessment, CGU will revisit its pricing, with a view to reducing
premiums where possible.
Recommendations from the assessments will be provided to strata property owners and
managers on repairs that could be made to improve the property’s resilience and risk rating,
enabling the properties to potentially be re-rated so that customers receive sustainable
Should the body corporate wish to have the remedial works carried out, SUU could facilitate
a detailed quote either through the building manager’s preferred trades people or local
Until the surveys are completed, it is difficult for CGU to estimate the size of potential
premium reductions. Early stage high-level calculations suggest individual premium
reductions could be up to 25 per cent.
The project is part of a broader approach by Insurance Australia Group (IAG) — CGU’s
parent company — which focuses on insurance industry leadership, and creating safer,
more resilient communities.