Proposal to transfer CGU insurance licence
October 28, 2016
CGU Insurance’s innovative strata building resilience project to help address insurance affordability in North Queensland has delivered much-needed premium relief to over 7,000 unit owners in the region, for a combined saving of more than $1.3 million.
On average these unit holders have seen their annual insurance premiums fall by over $150 a year, and more than half have seen their premiums reduce by over 10 per cent.
CGU’s wholly-owned subsidiary Strata Unit Underwriters (SUU) expects to have offered this service to all CGU and SUU residential strata customers in North Queensland by June.
So far, a quarter of the properties assessed were provided with specific recommendations on how they could further improve resilience, the most common being waterproofing around doors and windows, addressing inadequate drainage from guttering, and general maintenance of the landscaping in and around the property.
The project has also helped improve cyclone preparedness in North Queensland. Almost a quarter of the properties assessed still hadn’t created a formal cyclone management plan and were reminded through the project of the need to do so.
IAG Commercial Insurance Chief Executive Ben Bessell was delighted with the way this award-winning project was progressing.
“We created this strata building resilience project last year to help address insurance affordability in North Queensland and it has clearly been effective in doing that,” he said.
“The project is delivering tangible premium relief where it is needed and is helping to build more resilient and safer communities.”
About the project
CGU is funding a risk assessment by specialist building consultant Sergon of all residential strata properties that SUU and CGU insure in North Queensland.
This assessment covers risks such as building construction type and method, exposure and resilience to direct wind-driven rain, as well as other hazards and possible defects.
Following completion of the assessment, CGU revisits its pricing with a view to reducing premiums where possible. Any recommendations on repairs to improve the property’s resilience and risk rating are provided to the strata property owners and managers.
When the strata property owner or manager agrees to make the required property improvements, CGU and SUU deliver the premium reduction on renewal of the policy ahead of the work being completed.