In September, Insurance Business reported that Calliden and QBE, the only two providers of home indemnity insurance in WA, were reviewing their positions in the WA home indemnity insurance market after receiving the Economic Regulation Authority’s final report on the market.
Calliden and the WA Government have now agreed the terms of a reinsurance arrangement that will see Calliden continue to provide HII to the WA market.
The initiative will be supported by the state of Western Australia through its Department of Commerce (DOCWA) providing a 100% quota share reinsurance arrangement to Calliden.
The arrangement will come into effect on1 November 2013. Intermediaries and clients will continue to be serviced by the Calliden home indemnity insurance team and Calliden will continue to operate subject to their existing underwriting guidelines.
Calliden Group CEO, Nick Kirk said: “Calliden is pleased to be working with the WA Government in relation to home indemnity insurance and to be able to provide continued support to its intermediary partners in WA. We will work to ensure a seamless transition for all parties including homeowners, builders and insurance intermediaries.
“This arrangement reinforces our ability to deliver risk management and administration services in relation to home indemnity insurance, and enables us to expand both our risk appetite and distribution partner network.”