New report on the strata insurance market released

A new report has been released, offering insight and analysis into the workings of the strata insurance market and its practices.  

Prepared by insurance industry specialist John Trowbridge, the Phase 3 report, “Energising the strata insurance market: a blueprint for affordability, availability and competition”  builds on his Phase 1 report published last July that explored the transparent disclosure of intermediary remuneration (fees and commissions) and the Phase 2 report published last December that investigated potential remuneration reforms.  

The paper identifies two clear priorities to be attended to without delay. The first is the implementation of the transparent disclosure regime identified in the Phase 1 report released last year in July. The Strata Community Association has announced that it is actively pursuing these recommendations with its members and the broking community. The broking community has taken the lead in this area through the 2022 Insurance Brokers Code of Practice, which has introduced new disclosure measures for insurance brokers to address the issue of transparency. 

The second priority that the report identifies revolves around insurance market capacity, which is constrained. The report urges the insurance industry, comprising of insurers and underwriting agencies, to investigate, in collaboration with representatives of broking houses, strata management groups and owners’ corporations, what steps can be taken to alleviate the market capacity problem. 

NIBA CEO Philip Kewin said the report delves into some complex issues currently prevalent in the strata insurance space.  

“This is a comprehensive report and illustrates the complexities of the strata market and the important role played by the broker, strata managers, insurers and the owners corporation,” he said.  

You can find out more and read the full Phase 3 report here.