Strata insurance

Strata insurance

June saw the Docklands Representative Group (DRG) host a webinar on strata insurance. 

This time the invitation was extended to neighbouring owners’ corporations (OCs) and the DRG was extremely pleased to have participants from across Docklands, Southbank and the CBD. 

“We believe it was important for any interested OC committee member to participate in this session as navigating the strata insurance market is challenging. And with strata insurance premiums surging over the last couple of years, it has become a significant and growing expense for OCs,” a DRG event organiser said. 

In the current market, advice is for OC committees to budget for premium increases of 15 to 20 per cent (for schemes that are claims-free), and at least 30 per cent for schemes with a challenging claims history. Added to this, increasing concern is being expressed about transparency and disclosure practices in this sector, especially as OC committees may have limited knowledge of these arrangements.

The DRG was fortunate to secure as a presenter insurance expert, John Trowbridge, who recently completed a three-phase investigation into strata insurance. 

During the webinar, John provided an overview on the configuration of the strata insurance market, focusing on how and why it differs from other types of insurance, which is due to the multi-owner nature of strata properties and the involvement of strata managers in the chain from insurer to client.

Topics discussed included the disclosure practices of intermediaries, remuneration of intermediaries and competition and affordability of strata insurance.  

Feedback received from this session was extremely positive and plans are currently in hand for the next OC committee session. 

If you currently serve on an OC committee and would like to hear about forthcoming sessions, please register your interest via our website ... •

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