QBE to withdraw from Home Warranty market in SA
Following the recent 50% increase in rates on 18 March 2013, QBE has now advised the South Australian Government that it is withdrawing from the Home Warranty Insurance market with effect from 1 July 2013.
QBE has reassessed their position and consider it no longer viable as further sizeable premium increases would be required. The current economic environment has contributed to a significant increase in builder insolvencies and home owner claims and almost all other insurers have also departed the South Australian market.
As it is a legislative requirement for this insurance to be purchased, in order to allow an orderly transition of business from QBE, the South Australian Government Financing Authority (SAFA) has confirmed its intent to enter into an agreement with QBE for the delivery of this insurance for the period 1 July 2013 - 30 June 2014.
For further information, please visit the South Australian Government Financing Authority website www.safa.sa.gov.au/insurance/ or speak with one of our Home Warranty experts at MBAIS