Insurance builder KASE Group has announced its acquisition of Townsend Building Services, marking a key milestone in its 2024 growth strategy.
This is the second major transaction for KASE this year, following its earlier purchase of Adelaide Insurance Builders.
The deal enhances KASE’s national footprint in insurance restoration and construction services, particularly in Queensland, where Townsend has a strong presence.
KASE Group CEO Kurt Saunderson highlighted the strategic importance of the acquisition.
“The addition of Townsend Building Services to our portfolio is an exciting step forward in our mission to become the preferred insurance builder in Australia,” he said.
He added that Townsend’s established reputation and industry expertise make it an ideal addition to KASE’s portfolio.
“Townsend’s reputation for excellence and reliability aligns perfectly with our commitment to quality and client satisfaction. This acquisition allows us to enhance our service offerings and strengthen our position in key markets,” Saunderson said.
The integration will focus on ensuring a smooth transition for clients and partners, leveraging Townsend’s skilled workforce to strengthen KASE’s capabilities in key markets.
The acquisition occurs as the Australian construction and insurance sectors adapt to new regulations, including a ban on engineered stone introduced in July 2024.
The ban restricts the use of engineered stone containing over 1% crystalline silica but allows exceptions for specific repairs to existing installations.
Michael Sander, engineering technical lead at Crawford’s CRD Building Consultants & Engineers, emphasised the importance of understanding the regulations to manage claim costs effectively.
“Claim costs can easily skyrocket if assessors and builders don’t fully understand the new rules and assume it’s a total blanket ban,” he said.
He noted that repairs such as filling cracks or drilling holes are still permitted, but they require regulatory approval and adherence to strict safety protocols.
The ban, aimed at reducing exposure to silica dust linked to health risks like silicosis, requires insurers and builders to provide Safe Work Method Statements for any approved repair work. Alternatives such as Evo Stone and Corian are emerging as replacements, offering insurers and builders cost-effective solutions.
Globally, the construction insurance market is experiencing a recovery, with capacity levels approaching those seen during the 2019 soft market cycle.
A report by WTW highlights that infrastructure investment and the entry of new market players are driving growth, with capacity expected to continue increasing through 2025.
In Australia, insurers are responding to opportunities in professional liability coverage and risks associated with technological advancements in construction.
