IAG has said that it believes that plastic foam cladding should not be used in high risk construction due to its increased fire risk.
In a submission to the Senate inquiry into non-conforming building products, the major insurer said that to mitigate the risks posed by non-conforming cladding the Government should consider “an extensive national audit of all buildings to understand and quantify the current exposure.”
While State Governments have said they will complete an audit of buildings containing aluminium composite panels, the insurer said that this should be widened to include all types of plastic foam cladding.
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“We understand the enormity of such an audit and suggest that in the first instance this could be limited to the most at-risk buildings (i.e. over a certain height or level of occupancy) and expanded over time,” Darren Maher, group chief underwriting officer, wrote in the submission.
Maher noted that it is currently difficult to estimate the number of buildings that may contain non-conforming building products, which makes this not only a safety risk for tenants but also provides the insurance industry with unknown underwriting risks.
Non-conforming cladding was blamed for the recent fire which tore through the Grenfell block of flats in London and IAG also said that the Government should “consider tightening regulation and defining responsibilities and liabilities across the supply chain.”
Whilst cladding has hit the headlines, the insurer said that issues surrounding non-compliant building materials extend further into the industry.
“We are noticing similar issues for other materials including braided hosing, electrical wiring and inferior PVC piping,” the submission continues.
IAG said the Government should explore national testing and monitoring compliance, improved regulation of the importation and supply of building products, a review of the approvals system and increased oversight of the certification process.
The insurer said that the Government should also look at boosting education and awareness of the risks of using non-conforming products.
“All participants in the supply chain (manufacturers, importers, builders, contractors, surveyors, certifiers, owners and occupants) need to be made aware of these risks and the appropriate action that can be taken to mitigate against it,” the submission read.
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