Concerns Arise Over Construction Code Pause Amid Housing Push
Concerns Arise Over Construction Code Pause Amid Housing Push
0
The federal government's initiative to accelerate housing development by relaxing certain building regulations has raised alarm within the insurance sector.
Housing Minister Clare O’Neil announced changes on social media, indicating a strategic pause on parts of the National Construction Code to expedite building approvals and encourage the construction of much-needed homes across Australia.
This move comes in response to challenges in the approval process, which often delays construction.
The National Construction Code is a critical regulatory framework that ensures safety, health, and sustainability standards in building procedures. It undergoes updates every three years, with the next set for 2028. However, reports indicate a possible government plan to defer this update by four years, a decision seen as potentially detrimental by industry stakeholders.
Insurance providers, represented by the Insurance Council of Australia (ICA), have expressed concern about this development. The ICA acknowledges the necessity of addressing housing shortages but warns against compromising future community resilience and safety. Insurers emphasise the importance of integrating resilience against natural disasters into the building regulations.
According to the ICA, current and future disasters necessitate homes and businesses that can withstand severe weather conditions such as bushfires, cyclones, and floods. Advocates suggest that enhancing the construction standards to accommodate these risks could collectively save the Australian economy up to $4 billion annually by preventing damage and losses.
As the housing initiative progresses, balancing speed with safety and resilience remains a central point of discussion among stakeholders. The pending pause on construction code updates has put a spotlight on the risk management strategies of both builders and insurers.
The decision to pause updates to the National Construction Code could have lasting impacts on the building industry, insurance markets, and the broader Australian community. While the acceleration in home construction seeks to address the housing deficit, there is a potential risk of building homes that do not sufficiently withstand environmental hazards, which could lead to increased insurance claims and economic burdens in the face of natural disasters.
Looking ahead, the construction and insurance sectors will likely continue advocacy for maintaining and enhancing building resilience standards. Further discussions with policymakers may lead to a balanced approach that meets immediate housing needs while safeguarding against future risks. Stakeholders might expect more detailed government guidelines and potential consultations to refine this initiative.
Published:Thursday, 28th Aug 2025 Source: Paige Estritori
In a strategic move set to bolster its market position, NM Insurance has announced a five-year agreement with capacity provider Zurich, positioning itself for further growth and increased broker confidence in its success. Since its establishment two decades ago as Nautilus Marine Insurance Agency, NM Insurance has expanded its focus beyond the recreational boat market in Australia, branching into New Zealand and diversifying into the commercial marine, caravan, and motorcycle sectors. - read more
In an era where cyber threats are increasingly sophisticated, CFC Underwriting Limited has unveiled a unique opportunity for brokers to fortify their expertise through its newly launched Cyber Masterclass. This initiative offers a flexible, on-demand video learning series designed to advance brokers into proficient cyber insurance specialists at their convenience. - read more
New South Wales (NSW) is undertaking a detailed review of its Compulsory Third Party (CTP) insurance scheme as well as its lifetime care and support system. The Standing Committee on Law and Justice of the state's upper house has initiated this examination as part of their routine practice conducted every parliamentary term. The last thorough assessment took place in 2022. - read more
A recent decision by the Australian Financial Complaints Authority (AFCA) has ruled against a homeowner seeking an $18,000 refund from Allianz. The homeowner claimed that the insurer failed to adequately inform her about substantial increases in her optional flood cover premiums. Initially, her monthly payments surged from $369 to $1277 in August 2022, a change she only noticed in March of the following year through her bank statements. - read more
Insurance premiums for group life policies with long-term benefits have surged between 15% to 25% on average in the first half of the year, according to a mid-year market update from Marsh Australia. While the steepest increases affected those with adverse claims experiences, short-term rates and premiums for permanent disabilities remained relatively steady. The sector has also become more selective, with insurers adopting stricter underwriting standards, particularly eschewing high-risk industries. - read more
Running a restaurant involves navigating a myriad of potential liabilities. From food safety issues to customer injuries on premises, the risks are numerous. In recent years, liability concerns have become even more pressing in the restaurant industry, as businesses face strict regulations and the potential for costly litigation. - read more
In the bustling world of hospitality, restaurant owners face a unique set of challenges that can impact their financial stability. From unexpected kitchen mishaps to customer accidents, understanding the unique risks in the hospitality industry is crucial. These risks can lead to significant financial burdens if not properly managed. - read more
Running a restaurant in Australia comes with its own set of unique challenges and risks. From busy kitchens to bustling dining areas, every corner of your establishment holds potential liability issues. Understanding these risks and how they can affect your business is crucial for safeguarding your investment. - read more
Running a restaurant in Australia is both exciting and challenging. From crafting delightful dishes to ensuring an excellent dining experience, restaurant owners juggle multiple responsibilities daily. Amidst all these, securing adequate insurance coverage often takes a backseat, though it's crucial for the health of the business. - read more
Knowledgebase
Incontestability Clause: A provision in a life insurance policy that prevents the insurer from voiding coverage due to a misstatement by the insured after a certain period.
