Independent review of strata insurance practices paper released

Industry expert John Trowbridge has today released a findings and recommendations paper from Phase 1 of an independent review of the strata insurance market. This paper was developed following submissions and discussions with interested parties from Phase 1 which commenced in late March 2022.

The review aimed to identify disclosure practices and ways to achieve disclosure for strata property owners and their strata committees.

John Trowbridge said “Despite the widespread support from strata managers and brokers for a transparent disclosure regime, there is a need for some form of regulatory initiative to give brokers and strata managers clear guidance, confidence in any changes and an incentive or obligation to make the changes’’.

“Both NIBA and the SCA have expressed support for a disclosure regime along the lines recommended in this paper and both associations are strongly supportive of a self-regulatory approach. Furthermore, both NIBA and SCA have indicated a desire to work with their members and with each other to establish a workable self-regulatory regime for strata insurance disclosure”.

Philip Kewin, NIBA CEO said that “NIBA welcomes the independent review of strata insurance practices paper and the core of the recommendations are consistent with NIBA’s approach to transparency through the 2022 Insurance Brokers Code of Practice.

“It’s important that we recognise the role that brokers’ and strata managers play in strata insurance in addressing the needs of the Owners Corporation, but it needs to be clear what role each of the parties are playing and how they are remunerated.

“NIBA supports transparency, and while we will not be mandating a templated approach, we will include the template in our Implementation Guide which accompanies the Insurance Brokers Code of Practice’’, Kewin added.

Phase 2 of the review will consider the remuneration of intermediaries and possible reforms, while phase three will discuss competition, affordability and availability of strata insurance.

If you wish to respond to any aspects of the paper, please visit johntrowbridge.com.au or email John Trowbridge at john@trowbridge.com.au.