Following last week's announcement by Victor Dominello, Minister for Innovation and Better Regulation, that the Baird Government would be overhauling the NSW home warranty market and opening it up to competition, Australia Building Service Home Warranty today announced its intention to enter the market in 2017.
ABSHW Managing Director, Phil Sim welcomed the Government's decision to open up the market to new and innovative consumer protection products that will give builders and consumers choice and better protection.
"Home warranty insurance has been broken for decades. Builders hate it and consumers can't see any value in it", Mr Sim said.
ABSHW intends to enter the market in 2017 immediately after legislation has been passed to open the market up to competition to the Government Insurer - HBCF iCare.
Mr Sim stated, "We'll be entering the market in 2017 to provide an innovative consumer protection product that will provide far greater protection to consumers than exists today without a substantial increase in premiums."
The ABSHW offering will entail inspections of homes whilst under construction to detect and remedy defects and ensure consumers only make payments for work actually completed by their builder. "Unlike the existing scheme our offering will actually reduce the risk of defects occurring and reduce the impact of insolvency on consumers," Mr Sim added.
"Our product offering will also be attractive to builders who are a sick of iCare medalling in theirfinancial affairs, locking up capital and the endless and frustrating maze of brokers and paperwork ".
The ABSHW offering does not involve brokers, the tying up of capital and securities,repeated requests for financial information and audits. One of its major features will be risk rated premiums which will see good builders pay much less for their consumer protection product.
Mr Sim said, "With our product, builders who are building well will be rewarded by much lower premiums as should be the case."
"We're very excited about entering the market next year to deliver a consumer protection prod uct that builders and consumers actually want."
Contact: Phil Sim - mobile 0419 422 225
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