Proposal to transfer CGU insurance licence
October 28, 2016
CGU Insurance’s strata building resilience project to help address insurance affordability in North Queensland has delivered average annual premium reductions of $200 to more than 3,000 customers following the completion of the project’s first 100 building assessments.
This is an average annual insurance saving of 11 per cent, with the reduction provided by CGU with policy renewal, or through a policy credit if the customer’s policy has been renewed since the project commenced in April.
CGU Chief Executive Officer Peter Harmer said he was delighted with the way the project was progressing and the results it was delivering for customers.
“Through this initiative we are helping address insurance affordability in North Queensland and it reflects our commitment to work with customers, communities and governments to deliver solutions that make a difference,” he said.
“We’ve been able to offer insurance premium reductions of up to 29 per cent for our residential strata customers in North Queensland through this project. That’s tangible premium relief where it’s needed. At the same time, we are helping to build more resilient and safer communities.”
To date the majority of customers have received the insurance reduction without the need to commit to additional safety repairs at their building.
CGU's strata resilience project is delivering for Northern Queensland
Eighteen of the inspected buildings required additional repairs to secure the reduction offered and CGU has offered to deliver the premium reduction on policy renewal, ahead of the work being completed.
This is to help the strata property owner or manager fund the identified required property improvements, to make their building safer and more resilient.
CGU’s wholly-owned subsidiary Strata Unit Underwriters (SUU) insures over 500 residential strata properties in North Queensland and is overseeing the project’s implementation. SUU expects to have offered this service to all CGU and SUU residential strata customers in the region by April next year.
Under the project, CGU is funding a building risk assessment by Sergon, a specialist building consultant, 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 each assessment, CGU revisits its pricing with a view to reducing its premiums where possible. Any recommendations from the assessment on repairs that could be made 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 has agreed to make the required property improvements, CGU and SUU has delivered the premium reduction on renewal of the policy ahead of the work being completed.
The project is part of a broader approach by Insurance Australia Group (IAG) — CGU’s parent company — which focuses on disaster mitigation.
CGU has offered to share the findings of the building assessments with government, councils and other interested stakeholders, to improve knowledge and awareness of building codes, materials, and other mitigation, which all impact on insurance premiums