The UK Grenfell Apartments fire has, as you know, created angst about ACP panels, and MBIE has published their thoughts about compliance issues in NZ (http://www.mbie.govt.nz/about/whats-happening/news/2018/suspension-of-six-codemark-certificates ). Members who have used – or intend to use – the products have expressed concern about the potential for a claim against them, and whether they would be covered in that event.
Aon has researched this issue: the NZ situation is not the same as in Australia or the UK. The products used here are different and not currently considered to present significant risk, although the research is ongoing and not conclusive. There may be incidences of materials used in specific projects where the supply chain and product composition is not fully known.
ACP panels are not (at this stage) excluded from the cover arranged through NZACS, and the policy would respond under the same preconditions as for other claims. Nor is there a view – in NZ – that ACP panels present a special risk to be reviewed by local insurers. But this is a potentially major emerging risk overseas, and reinsurers may respond accordingly. The finer points of the policies for 2018/19 have not yet been negotiated. So at this stage we can only await events.
If you are considering using these products, you need to be able to verify that you have been prudent in assessing the potential risks, and have specified accordingly. BCAs may put up some hurdles. We advise caution.