New South Wales Builder’s Licence Application
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When applying for a builder’s licence in New South Wales you will need to submit your application through State Insurance Regulatory Authority (SIRA), the details are below:
Introduction
The State Insurance Regulatory Authority (SIRA) is the New South Wales government organisation responsible for regulating insurance and alternative indemnity products (building cover contracts) under the Home Building Act 1989 (the Act).
Licence holders and potential licence holders are required to submit business plans to SIRA for review as part of an application to become a licence holder for the HBC scheme in New South Wales and in association with premium filings. This enables SIRA to assess whether the licence holder or potential licence holder has developed a well formulated approach for the implementation of its strategic objectives including undertaking a proper risk assessment of its business.
Business plan requirements
The business plan for each licence holder is to be prepared in accordance with section 105S of the Act and must:
a) Be approved by the licence holder’s board or corporate trustee prior to submission to SIRA
b) Describe the manner that the licence holder’s business will be conducted (including distribution channels, premium setting and collection, claims handling, team management, expenses and systems)
c) Include the licence holder’s strategic objectives for their HBC business ` together with targets, timeframes, and planned activities to achieve the strategic objectives.
The strategic objectives should, as a minimum include the following:
I. premium setting and policy administration in compliance with the HBC (premium) insurance guidelines, or contribution setting and policy administration in compliance with the HBC (contribution) AIP guidelines
II. continual improvement of eligibility criteria in compliance with the HBC (eligibility) insurance guidelines
III. financial protection of the consumer against defective or incomplete work when the contractor disappears, dies or becomes insolvent
IV. efficient, honest, and fair customer service and complaints resolution processes (for contractors and consumers)
V. development and improvement of internal resource capability or identifying external expertise to conduct HBC business
VI. building a strong governance and corporate culture, and
VII. continuous improvement of the business model to deliver competitive and innovative products and services.
The business plan must include:
HBC business objectives, mission, and vision
Evidence of a strong governance framework, including a structural chart and summary of roles in the governance oversight committees
An operational and organisational risk management plan (including the identification, assessment, and mitigation of those risks)
Home building compensation (business plan) insurance guidelines
An organisation structure and internal resource capability (and external expertise if applicable)
A distribution plan (including channels, category of contractors targeted and ensuring ease of access)
APRA documentation relevant to HBC submitted to meet APRA requirements including the business plan (where applicable), and
A statement of business intent and business plan as submitted to Treasury (where applicable).
The business plan must be consistent with:
The licence holder’s claims management model and organisation structure that supports the model
The licence holder’s complaints management model – in line with the requirements specified in the HBC (claims handling) insurance guidelines, and
Documents to satisfy compliance with prudential standards required under the HBC prudential guidelines.
Business plan filing process
Frequency of business plan submission:
A business plan should cover a three-year period.
Licence holders are to provide their business plans to SIRA every year for the financial year beginning 1 July by 30 September of that year.
SIRA may make a written request for licence holders to submit an updated business plan at any time within the one year period, if SIRA deems it necessary to do so.
If the licence holder departs significantly from their previously submitted business plan, the licence holder must notify SIRA and upon the request of SIRA, must submit a revised business plan as per section 105S(2)(a) of the Act.
Assessment and management of business plans:
SIRA will assess the business plans of licence holders against the requirements set out in section 5 of these Guidelines.
SIRA may request additional information or amendments to business plans in order to ensure business plan requirements of the HBC scheme are met.
Business plans may be used by SIRA to assist in the assessment of compliance with other HBC insurance guidelines including:
a) HBC (eligibility) insurance guidelines
b) HBC (premium) insurance guidelines
c) HBC (contribution) AIP guidelines
d) HBC (prudential) insurance guidelines, and
e) Licensing requirements.
SIRA will monitor and review the business plan compliance and/or HBC business of licence holders in accordance with these Guidelines in New South Wales.
With two out of every ten plans we do being for builders and construction professionals, our business plan may be needed for insurers to obtain adequate insurance coverage or home warranty insurance, home building compensation or domestic building insurance, to get an approval or permit from a government body or to secure project finance from financiers or investors, Business Plan Writers (BPW Group) are here to help.
