Insurer slashes North Queensland strata premiums by 11%

Insurer slashes North Queensland strata premiums by 11% | Insurance Business

Insurer slashes North Queensland strata premiums by 11%
More than 3,000 North Queenslanders have received annual CGU Insurance premium reductions of $200 following the completion of the insurer’s project to get 100 building assessments.

As reported by Insurance Business in April, CGU is funding specialist building consultant Sergon to undertake risk assessments of buildings to improve building resilience so customers can receive premium reductions.

So far customers received an average annual saving of 11% through either a policy renewal or a policy credit if their policy has been renewed since the project commenced in April. Some residential strata customers have received reductions of 29%.

The majority of customers have received the insurance reduction without needing additional safety repairs at their building.

Eighteen of the inspected buildings required additional repairs to secure the reduction offered and CGU has offered to deliver the premium reduction on policy renewal, ahead of the work being completed, to help the strata property owner or manager fund the identified required property improvements, to make their building safer and more resilient.

CGU’s wholly-owned subsidiary Strata Unit Underwriters (SUU), which insures over 500 residential strata properties in North Queensland, is overseeing the project’s implementation. SUU plans to offer the service to all CGU and SUU residential strata customers in the region by April next year.

After each assessment, CGU revisits its pricing with a view to reducing its premiums where possible and recommendations from the assessment on repairs that could be made to improve the property’s resilience and risk rating are provided to the strata property owners and managers.

CGU CEO Peter Harmer spoke of his delight at the way the project was progressing and the results it was delivering for customers.

“Through this initiative we are helping address insurance affordability in North Queensland and it reflects our commitment to work with customers, communities and governments to deliver solutions that make a difference,” he added.

The project is part of a broader approach by CGU’s parent company IAG which focuses on disaster mitigation.