Role

The Home Warranty Insurance Scheme Board was established to oversee the operation of the home warranty insurance scheme. This was a primary recommendation of the NSW Home Warranty Insurance Inquiry in September 2003.

Following commencement of the Home Building Amendment Act 2004 on 1 September 2005, the Scheme Board was established under Part 6 of the Home Building Act.

The functions of the Scheme Board are to:

• advise the Minister with respect to the approval of kinds of insurance, and insurers
• advise the Minister on the conditions of approval of insurers and variations of such approvals
• monitor the operation of the scheme and to provide advice and to make recommendations with respect to the scheme
• provide advice to the Minister with respect to any other matter referred to it by the Minister.

Membership

The Scheme Board presently consists of five members being the Director-General of the Department of Commerce (or a nominee) and four people appointed by the Minister with knowledge or experience in insurance products or commerce. The membership of the Board was approved on 5 December 2005 and the term of appointment of all members expires on 31 December 2008.

The current membership of the Scheme Board is as follows:

Chairperson

• Mr Greg McCarthy, Chairperson, Board of Directors, WorkCover NSW

Deputy Chairperson

• Ms Penny Le Couteur, Deputy Chair, Board of Directors, Motor Accidents Authority of NSW

Members

• Ms Susan Clark, Member, Board of Directors, WorkCover NSW
• Ms Lyn Baker, Commissioner for Fair Trading (nominee for Director-General, Department of Commerce)
• Mr Stephen Evers, Director, Client Markets, Swiss Reinsurance Company

Activities

The Scheme Board meets bi-monthly and has overseen the development of:

• amended conditions of approval for insurers
• market practice guidelines and claims handling guidelines
• an industry deed
• arrangements for the reporting of data by insurers.
  

As part of its ongoing scheme monitoring role, the Scheme Board is examining how the scheme may be improved for the benefit of homeowners and builders. From September 2007, the Scheme Board has started publishing information on the operation of the scheme, based on data provided by insurers, which can be accessed in pdf format below.

A small secretariat provides executive support to the Board and manages Fair Trading’s responsibilities under the Home Building Act in relation to the home warranty insurance scheme.

Home Warranty Insurance Scheme Information

The Office of Fair Trading and the Home Warranty Insurance Scheme Board have responsibilities under the Home Building Act 1989 in administering the home warranty insurance scheme in New South Wales. In order to carry out these responsibilities, Fair Trading and the Scheme Board collect data on claims and policies from insurers in order to be able to monitor the operation of the scheme.

This data is used to produce information to:

• inform stakeholders and the general public of the financial progress of the scheme 
• assess the affordability and viability of the scheme
• advise the responsible Minister and the Government on the scheme, including investigation of policy matters (eg. possible changes to the scheme) 
• assist in the monitoring of an insurer’s compliance with their conditions of approval including compliance with the market practice guidelines and claims handling guidelines.

The data collected can also be used to produce information to assist insurers in managing their business, as industry-wide information is useful to them.

Commencing with the March 2007 quarter, information on the operation of the scheme is published below. View or download the scheme report in PDF format:

March 2008 - Home Warranty Insurance Scheme Report (size: 1006k)
December 2007 - Home Warranty Insurance Scheme Report (size: 298k)
September 2007 - Home Warranty Insurance Scheme Report (size: 268k)
June 2007 - Home Warranty Insurance Scheme Report (size: 302k)
March 2007 – Home Warranty Insurance Scheme Report (size: 334k)

Contact

Home Warranty Insurance Scheme Board
PO Box 972
Parramatta  NSW 2124
Tel: 9777 8803
Fax: 9777 8810
Email:  HWISchemeBoardSM@oft.commerce.nsw.gov.au