Domestic Building Insurance Premium Validation Review: Summary Report 2016-2018
Essential Services Commission
Version:
2019
(Current)
Publication date
2019
Pages
18
Current status
Current
Previous Names
Summary Report 2016-2018
Description
Domestic Building Insurance (DBI) is mandatory on all domestic construction contracts over $16,000 in value. It allows a home-owner to claim up to six years after construction has been completed, if their builder’s work is defective or uncompleted, but only if the builder has died, disappeared or become insolvent. The Victorian Managed Insurance Authority (VMIA) has been the main provider of DBI since 2010. It has also been provided by AssetInsure and Berkshire Hathaway Speciality Insurance (BHSI) since 2015 and 2018 respectively. Our role is to examine the adequacy and validity of the VMIA’s DBI premiums. To assist us, we engaged KPMG to provide independent, specialist actuarial advice.
Scope
Contents:
Summary
Our task
The VMIA’s premiums are sufficient
The VMIA’s premium coverage is not excessive
The VMIA’s underwriting standards conform to commercial standards
1: Introduction
1.1: What is domestic building insurance?
1.2: How has domestic building insurance developed over time?
1.3: What have we been asked to do?
1.4: Our approach
2: Pricing
2.1: How are the VMIA’s premiums set?
2.2: The VMIA’s premiums are sufficient
2.3: The VMIA’s premium coverage is not excessive
2.4: The VMIA’s underwriting standards conform to commercial standards
2.5: Information, methodology and assumptions used by the VMIA
Glossary
Collections
Licence
Creative Commons Attribution 4.0 International licence
VIC
Sector
Residential
Commercial
Civil
Industrial
