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
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
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. - read more
RACQ Insurance has been instructed to bolster a payout to a customer following a ruling by the Australian Financial Complaints Authority (AFCA). The dispute arose after the insurer's handling of a house fire claim lodged by a woman in October 2023 was found lacking. The fire, initiated by scented candles, resulted in significant fire and smoke damage to her home. - read more
The Australian Securities and Investments Commission (ASIC) has spotlighted significant shortcomings in the direct sale of life insurance products, urging the industry to reassess its sales practices. The recent review unearthed ongoing issues with remuneration structures, indicating that some insurers still link commissions to sales targets, potentially fostering aggressive sales tactics. The study further revealed a troubling rise in claims disputes, with reported cases more than doubling since 2018, raising concerns about the transparency and trustworthiness of these policies. - read more
Truck insurance is crucial for both business owners and individuals who rely on trucks for their livelihood. Trucks, whether for personal use or commercial purposes, represent a significant investment. Protecting that investment is paramount, not only to ensure continuity in business operations but also to safeguard against unexpected financial burdens. - read more
Truck insurance is more than just a legal requirement; it's a crucial part of securing your livelihood as a truck owner in Australia. Understanding the costs involved not only helps you budget effectively but also ensures you’re not caught off guard by unexpected expenses. By grasping what your premiums cover and what factors influence them, you can make informed decisions that align with your financial goals. - read more
In today's fast-paced world, ensuring financial security and safeguarding your assets is paramount. This is especially true for truck owners, who not only have to manage their on-road operations but also need to adequately protect their investment. For many, truck insurance is a critical component of financial planning, but it's vital to delve deeper into the structures and costs that these policies entail. - read more
Truck insurance is a critical concern for both business owners and individual operators within Australia. Given the significant investment that a truck represents, safeguarding this asset with appropriate insurance coverage is not just prudent, but necessary. - read more
Knowledgebase
Insurable Interest: A financial or other kind of interest in the insured item or person, necessary for a valid insurance contract.
