Corey Nugent from Resilience Insurance Market Insights

Episode 70 Market Insights: Corey Nugent, CEO of Resilience Insurance, on how latent defects insurance is transforming the property market.

In this episode of Market Insights, Corey Nugent, CEO of Resilience Insurance, joins Urban.com.au CEO Mike Bird for a deep dive into the evolving role of insurance in property development. As the Australian property market faces increasing challenges, Nugent provides insights on how latent defects insurance (LDI) and risk management solutions are reshaping the industry, offering protection and confidence for developers, builders, and buyers alike.

The Growing Importance of Risk Management in Property Development

As the property development sector grapples with rising construction costs, tightening regulations, and shifting buyer expectations, risk management has never been more critical. Corey Nugent explains how Resilience Insurance is helping developers protect their investments and reduce liabilities through tailored insurance products that ensure quality and security throughout the construction process. By partnering with developers and providing robust risk mitigation strategies, Resilience is helping to future-proof projects and build greater consumer confidence.

Latent Defects Insurance: A Game Changer for Developers and Buyers

A central theme in the discussion is the increasing demand for latent defects insurance (LDI), which safeguards both developers and buyers against construction defects that may emerge after project completion. Nugent highlights how LDI is becoming a vital tool, particularly for high-rise residential developments, offering 10 years of protection against defects. For consumers, this coverage ensures that any issues arising after moving in will be promptly addressed, eliminating the need for costly legal action. For developers, offering LDI adds value to their properties, improving sales conversion and giving buyers peace of mind.

Enhancing Developer-Buyer Relationships

Nugent underscores the evolving expectations from buyers, who are increasingly prioritizing transparency and assurance when purchasing off-the-plan properties. With LDI in place, developers are seeing stronger sales conversion rates, as buyers are willing to pay a premium for the added protection and confidence that their new home will be built to the highest standards. Nugent believes that the ability to offer comprehensive insurance-backed guarantees is now a key differentiator for developers in a competitive market.

Proactive Risk Mitigation: A Win for Developers and Consumers

Nugent also discusses the value of early involvement with insurers throughout the development process. By conducting regular quality assurance checks from design through to construction, developers can identify and resolve potential issues before they become costly problems. This proactive approach not only reduces long-term liability but also helps preserve the financial health of developers, making their projects more attractive to buyers.

The Future of Property Development Insurance

Looking ahead, Corey Nugent sees a growing demand for comprehensive risk management solutions across Australia’s property market. As the industry continues to evolve, Nugent anticipates that more developers will recognize the value of insurance-backed quality assurance in maintaining profitability and reducing risk. With increasing consumer confidence, developments that offer robust insurance coverage are likely to see stronger market performance.

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