Gio Helps Households Use Less Carbon
The Age
Monday August 6, 2007
STIFFER building standards, including higher minimum-energy ratings, mean households may be underinsuring their properties, says Lyndell Fraser, head of GIO Personal Insurance.
Houses destroyed by fire, cyclones or other insurable events could end up costing more to rebuild because of changing council rules, Ms Fraser said.Grey water recycling and minimum regulations for energy efficiency, such as cross ventilation and cooling eaves, could add to construction costs. Competition for builders and materials after storms or fires could also drive up costs, she said.Overall, there was still "an enormous amount of debate" in the insurance industry about the impact of climate change, Ms Fraser said. "We're still in the process of improving our models."GIO is hoping to encourage consumers to take up more eco-friendly products. From the middle of this month, customers can opt for more energy-efficient appliances as replacements for damaged goods.GIO will also pay up to $2500 of the net cost of installing a rainwater tank or solar heating unit when a customer's home is at least 80 per cent damaged by an insured event.The company will also start offering owners of hybrid vehicles a 10 per cent reduction on their base premium to reward their efforts to cut carbon dioxide emissions.Ms Fraser said that while the hybrid petrol-electric cars were likely to be driven by people "who have a responsible attitude on a range of measures", the vehicles were also more expensive to repair."People are looking for practical steps," she said. "We believe that if we can create in our own way demand for better products ... manufacturers will respond."
© 2007 The Age