What's Changing
There has been a major shift in the assessment approach for builders holding or seeking open job value limits of up to $5M. icare HBCF have provided the detailed guidance on the Automated builder Scorecard Review (“ASR”) model for the reference of builders (HBCF Changes FAQ).
The introduction of ASR is intended to streamline the process and is reliant on credit scoring generated by Equifax.
Please note the ASR assessment process will be used for builders seeking limits up to 5M:
- New Builder applications at the time of limit request
- System Reviewed Builders at Certificate of Eligibility (COE) expiration. The COE is available on the icare HBCF Builder Self Service Portal.
- Small Builders at the time of the FY 22 scheduled review.
Whilst most builders with limits up to $5M will be assessed under the ASR regime, the insurer may still also require a financial manual assessment, for example:
- If an automated score falls below minimum thresholds
- If a builder with a limit up to 3M seeks to transition to a limit between $3M and $5M
- A builder seeking a multi unit project limit of greater than $1M for the first time
- The application of discretion available to insurer.
The new Auto Assessment Eligibility Application Form has fewer requirements and is designed to be simpler and clearer. Icare have advised that the Auto Assessment Eligibility Application Form and the updated HBCF Eligibility Manual will be available from 4 July on the icare website for industry reference.
As with any major change, there may be scenarios that need further investigation to determine whether and how the new ASR approach will be applied. Please refer to the icare HBCF website or reach out to SHC Insurance Brokers to assist explain general principles.
The inner workings of the credit scoring is controlled by Equifax, meaning that SHC Insurance Brokers, as a distributor, cannot be fully across Equifax algorithms and datasets used by the Equifax. Please note that if a builder seeks a correction to any errors in data used for the ASR credit scoring, the builder will need to raise this with Equifax directly. Neither icare HBCF or SHC can modify credit scores issued by Equifax.
Builders ASR assessed will be subjected to premium pricing based on simpler premium pricing model which focusses on entity licence period and business structure (e.g. sole trader, partnership, company).
Please refer to the icare HBCF Builder Self Service Portal to determine applicable premium loading or discount, particularly when quoting client projects.
Contact Us
Should you have any questions or do not currently have access to the icare HBCF builder self service portal, please contact us at your earliest convenience.
T: 1300 659 174
E: homewarrantynsw@shcorp.com.au
