Building Indemnity Insurance in South Australia has changed and it could affect you.
The South Australian Government Financing Authority (SAFA) has implemented a major change to their Building Indemnity Insurance (BII) service model.
From 1 July 2017, Building Indemnity Insurance in South Australia:
|has been consolidated with QBE becoming the sole agent|
|is limited to a select number of authorised brokers able to distribute via QBE that meet SAFA’s new criteria|
|has moved to a fee for service model as a result of brokers no longer earning commission|
|has an increased indemnity limit from $80,000 to $150,000 for policies issued on or after 1 July 2017|
MBA Insurance Services (MBAIS) has been selected as one of the authorised BII brokers, allowing you to continue dealing directly with us.
FREQUENTLY ASKED QUESTIONS
Do I need to take action?
- If you have eligibility managed by MBAIS, you don’t need to do anything.
- If your broker is not one of the authorised BII brokers and therefore can no longer offer you BII, you can sign a Letter of Appointment to move to MBAIS.
- If your broker is not one of the authorised BII brokers but you would like them to continue to manage your BII, they can place BII via MBAIS on your behalf, however they may charge an additional fee. We recommend confirming with your broker whether additional fees apply.
- If Calliden (RBUA) is your current insurer you will need to transfer to QBE to continue to access BII. MBAIS would be happy to help you with this process and then manage your ongoing BII needs. If you would like to do this please contact us. Note that QBE have advised that under these circumstance a review will be conducted within three months of the transfer.
If you are unsure if your broker can manage your Building Indemnity Insurance, please contact us on 1800 150 888 or firstname.lastname@example.org
Why is BII changing to a fee for service model?
Previously, brokers were paid a commission by QBE and Calliden (RBUA).
The South Australian Government Financing Authority (SAFA) have now ruled that no commission is to be paid to brokers and this will help supplement the indemnity limit change from $80,000 to $150,000. Brokers will now need to adjust their fee accordingly for the work involved in managing your Building Indemnity needs.
What will the fees be?
It is expected that all authorised BII brokers will now have a new fee structure in place that is reflective of their expertise and level of service provided.
Please contact us on 1800 150 888 or email@example.com for further details about our fee structure.
What do the changes mean for my business?
The South Australian Government Financing Authority (SAFA) will now regulate the scheme and approve pricing models from QBE Insurance.
They will also set the new guidelines for which the eligibility is based upon.
Will the price of applications increase?
Yes, as a result of the move to a fee for service model there will be changes to pricing from the 1 July 2017.
Please contact us on 1800 150 888 or firstname.lastname@example.org for further details about our pricing.
Why choose MBAIS?
We are the only authorised BII broker delivering profits directly back to the building and construction industry.
We look after a broad spectrum of builders, from those undertaking smaller straightforward jobs, to those undertaking major projects with significant complexity and service the 23,500 members of our State/Territory Associations through major offices in Melbourne, Sydney, Perth and Adelaide, and smaller offices in the other States.
Each State and Territory employs specialist staff skilled in the key areas of building and construction insurance such as Construction Works Insurance, Tradies Insurance, Surety Bonds and Building Indemnity Insurance.
Our specialist BII team proactively support your ongoing indemnity limit management and certificate issuing needs so you can keep on building.
If you are considering using any of our services, please read our Financial Services Guide.
If you have any queries about the upcoming changes, please contact us on 1800 150 888 or email@example.com