Centrepoint launches domestic funding

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6 February 2012

Exemptions granted to premium funders under consumer credit laws and the rising costs of insurance have prompted Centrepoint Alliance to launch a new domestic product.

After switching its business to focus exclusively on premium funding in 2009, Centrepoint Alliance is now completing a nationwide rollout of a domestic funding package after a soft launch three months ago through select brokers.

The domestic funding project has been such a success because households are searching for ways to manage skyrocketing premiums, according to CEO Bob Dodd.

“The cost of premiums is on the increase, particularly in areas of the country such as Queensland and Victoria which have been affected by floods and other events,” he told insuranceNEWS.com.au.

“What I am also hearing is that more and more people are getting advice from brokers to help them manage their insurance needs.”

Mr Dodd says exemptions granted to premium funders mean domestic offerings are more feasible.

Adelaide premium funder Principal Finance was the first to gain an exclusion from the new National Credit Code in October 2010. Exemptions were granted to the wider industry last year.

The exclusion means that brokers and other intermediaries using Centrepoint Alliance for consumer funding won’t need a credit licence or to comply with the “responsible lending” obligations of the National Consumer Credit Protection Act 2009.

Mr Dodd says about 14% of domestic premiums are placed through brokers.

“We believe that brokers will be asked to do more domestic work for customers given the challenges of last year,” he said.