WA's economic watchdog has recommended changes to home indemnity insurance.
The insurance protects consumers against losses incurred due to the death or insolvency of their builder and is compulsory for projects worth more than $20,000.
The Economic Regulation Authority was asked to conduct a review of the system last year.
"What we found is that the current model we don't think is sustainable for a variety of reasons," says the ERA's chairman Lyndon Rowe.
"Over time it hasn't been a very stable industry and insurance companies have come in and out."
Indemnity insurance is currently offered by two private companies but the Economic Regulation Authority has warned there is a real possibility the main provider QBE could pull out.
The company recently informed the South Australian government it would stop offering the product in that state from July.
The ERA has recommended the insurance product be split into two components, with warranty insurance to be provided by the building industry and for more private companies to be encouraged to offer construction cover.
MET, AIZ, AON – Noticeable Stocks at NYSE Financial Sector by b.../b
MetLife, Inc. (NYSE:MET) decreased 0.92% to close at $39.96. MET traded 5.71 million shares for the day and its earning per share remained $3.47. MetLife, Inc. (MetLife) is a provider of insurance, employee benefits and financial services, with operations throughout the United States and the regions of Latin America, Asia Pacific and Europe, Middle East and India (EMEI). The Company provides a variety of insurance and financial services products, including life, dental, disability and long-term care insurance, various annuity products, and auto and home insurance. Within the United States, it also provides a range of savings and mortgage banking products.
Assurant, Inc. (NYSE:AIZ) increased 0.89% to close at $39.89. AIZ traded 1.10 million shares for the day and its earning per share remained $4.21. Assurant, Inc. (Assurant) is a provider of specialized insurance products and related services in North America and selected international markets. The Company operates in five segments: Assurant Solutions, Assurant Specialty Property, Assurant Health, Assurant Employee Benefits, and Corporate and Other. These segments provide debt protection administration; credit insurance; warranties and service contracts; pre-funded funeral insurance; creditor placed homeowners insurance; manufactured housing homeowners insurance; individual health and small employer group health insurance; group dental insurance; group disability insurance, and group life insurance.
Aon Corporation (NYSE:AON) increased 0.05% to close at $39.77. AON traded 2.43 million shares for the day and its earning per share remained $2.27. Aon Corporation (Aon) provides risk management and human capital consulting services. The Company operates in two segments: Risk and Insurance Brokerage Services, which acts as an advisor and insurance broker, helping clients manage their risks, as well as negotiating and placing insurance risk with insurance carriers through its global distribution network, and Consulting, which provides advice and services to clients related to health and benefits, retirement, compensation, strategic human capital and human resource outsourcing.