It’s emerging that Qamvis insurance group—a construction-focused insurer is facing liquidation after its insurer partner demanded for funds owed.
Qamvis has been managing Qiducia Underwriting Australia agency and Qtrust Insurance & Advisory brokerage firm, both of which were capacitated by Guild Insurance.
On June 18, Qamvis group was put under liquidation with Paul Allen and Glenn Franklin of PKF Melbourne being appointed as the bonafide liquidators.
“The Director recently determined the company had insufficient cash flow to meet its ongoing obligations and did not have the funding to continue as a going concern,” PKF issued a statement.
PKF noted that before their appointment as liquidators, Guild had given a default notice stating that “in respect of funds owed in relation to policies”.
“Accordingly, Qamvis and its businesses ceased to trade and Qamvis was placed into liquidation.”
It’s still unclear how Gamvis’ customers will be impacted.
“The liquidators are liaising with Guild regarding ongoing access to Qamvis underwriting files and policies,” PKF adds.
“Guild has been notified of all policies incepted to the date of the appointment of liquidators.”
Guild’s spokesman informed Storm Assist that the insurance company was “working through the issues” supported by PKF, but declined to respond to any questions at this juncture.
PKF further noted that it remains “uncertain” whether unsecured creditors will receive any return, even though all entitlements due to the insurer’s employees were paid in full apart from a small percentage of the superannuation.
“As part of the liquidation process the liquidators will be investigating the company’s affairs with a view to recovering property for the benefit of unsecured creditors,” the announcement says in part.
From the insurer’s web page, Qamvis has been in operation since 2001 and is steered by Sam Greco, the Chief Executive Officer.
Qtrust specialised in providing owner-builder insurance product besides offering a range of other business and construction insurance. The company was headquartered in Melbourne while delivering its services countrywide.
Qiducia Underwriting Australia was also based in Melbourne and specialised in providing owner-builder coverage across all the Australian states and territories.
As Storm Assist has reported before, Australia’s construction industry has been marred with a lot of negativity including rocketing rates and reduced capacity.
The Construction Sector In Australia:
The construction sector in Australia generates more than $360 billion in revenue, delivering about 9% of the country’s Gross Domestic Product, with an annual growth rate projection of 2.4% in the next five years. It’s apparent that the effects of Covid-19 pandemic will have a significant impact on these projections.
The Australian construction industry is highly regulated in different occupations and sectors, with regulations being established at every government level.
In recent years, Australia’s construction industry has been underperforming with more complaints than praises being reported and the government has been working on a plan to help restore the lost glory of the industry.
Last month the Federal Government launched a scheme set to provide qualifying Australians with $25,000 grants to build or refurbish their houses, in an effort to improve the demand for housing in the construction industry besides keeping builders in employment.