Strata Cover Australia :: News
SHARE

Share this news item!

Strata Industry Advances Towards Phasing Out Insurance Commissions

Enhancing Transparency and Trust in Strata Management Practices

Strata Industry Advances Towards Phasing Out Insurance Commissions?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The strata management sector in Australia is witnessing a significant shift towards eliminating insurance commissions, a move aimed at enhancing transparency and building trust between strata managers and property owners.
This reform is gaining traction, with New South Wales leading the initiative.

The Strata Community Association NSW (SCA NSW) has announced a phased approach to replace insurance commissions. Starting from 1 January 2026, new standard management contracts issued by SCA NSW members will exclude options to accept commissions on insurance products. This decision marks a milestone in the industry's efforts to promote transparency and accountability.

The move to phase out commissions addresses longstanding concerns about potential conflicts of interest and the lack of clarity in financial arrangements between strata managers and insurance providers. By eliminating these commissions, the industry aims to simplify pricing structures and foster a more straightforward relationship between property owners and managers.

For property owners, this reform is expected to deliver greater transparency and accountability, ensuring that the selection of insurance products is based solely on the best interests of the strata community. For strata managers, the change offers an opportunity to build stronger, trust-based relationships with clients, enhancing the credibility and sustainability of their businesses.

As the industry progresses towards this new standard, it is crucial for all stakeholders to stay informed and engaged. Property owners should actively participate in discussions about management contracts and insurance arrangements, while strata managers must adapt to the evolving landscape by embracing practices that prioritise transparency and client trust.

Published:Sunday, 1st Feb 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

0 Comments

No comments yet. Be the first to share your thoughts.

Insurance News

Cohabit's New Digital Platform Revolutionises Strata Insurance Management
Cohabit's New Digital Platform Revolutionises Strata Insurance Management
15 Jun 2026: Paige Estritori
In a significant advancement for the strata insurance sector, insurtech company Cohabit has unveiled a digital platform designed to streamline the insurance process for strata schemes. This innovative solution allows property owners and managers to review and compare insurance options tailored to their specific buildings, leveraging comprehensive building data to facilitate informed decision-making. - read more
Suncorp's Strategic Move to Grow Strata Insurance Portfolio
Suncorp's Strategic Move to Grow Strata Insurance Portfolio
15 Jun 2026: Paige Estritori
Suncorp, a leading Australian insurer, has announced a strategic initiative to expand its presence in the strata insurance market. By reclassifying its strata insurance line from consumer to commercial, Suncorp aims to consolidate and grow its business in this sector, reflecting a clear strategic move to enhance its offerings for larger strata developments. - read more
NSW Strengthens Strata Laws to Safeguard Communities
NSW Strengthens Strata Laws to Safeguard Communities
08 Jun 2026: Paige Estritori
The New South Wales Government has initiated a series of reforms to the state's strata laws, aiming to bolster transparency and accountability within strata communities. These changes come in the wake of significant fraud incidents that have raised concerns about the governance standards in strata schemes. - read more
CHU Enhances Strata Insurance with Cyber Fraud Protection
CHU Enhances Strata Insurance with Cyber Fraud Protection
08 Jun 2026: Paige Estritori
In response to the escalating digital threats facing strata communities, CHU Underwriting Agencies has integrated cyber fraud coverage into its standard residential strata insurance policies. This enhancement provides up to $50,000 for losses resulting from social engineering fraud, a prevalent form of cybercrime where perpetrators impersonate trusted contacts to manipulate payment instructions. - read more


Strata Insurance Articles

The Importance of Updating Your Strata Insurance Policy
The Importance of Updating Your Strata Insurance Policy
Strata insurance is a specific type of insurance designed to cover shared property and common areas within a strata-titled property. This includes coverage for dwelling structures, common hallways, roofs, and sometimes even shared swimming pools or gardens. - read more
Understanding the Layers of Strata Insurance
Understanding the Layers of Strata Insurance
Strata insurance, also known as body corporate insurance, is a form of cover specifically designed for properties that share ownership or have multiple units. It typically covers the building and common areas, along with liability protection. This includes areas such as the roof, stairwells, lifts, driveways, and shared spaces in residential complexes, units, or apartments. - read more
Understanding State-by-State Insurance Requirements for Strata Schemes in Australia
Understanding State-by-State Insurance Requirements for Strata Schemes in Australia
Strata schemes are a popular form of property ownership in Australia, particularly in cities where high-density living is common. A strata scheme is essentially a building or collection of buildings that allows for individual ownership of a part of the property, combined with shared ownership of common areas. Residents coexist in a community and collectively manage shared spaces such as gardens, driveways, or facilities. - read more
How to Make a Claim on Your Strata Insurance: A Step-by-Step Guide
How to Make a Claim on Your Strata Insurance: A Step-by-Step Guide
When it comes to strata insurance, making a claim can feel daunting if you're not familiar with the process. A vital first step is understanding what constitutes a claimable event. Typically, these are events that lead to damage or loss in the common areas of a property, such as fire, storm damage, or vandalism. However, each policy can vary, so it’s important to check the specifics of what your coverage includes. - read more

Knowledgebase
Term Life Insurance:
A form of life insurance that is a pure protection policy with no cash or maturity value which lasts for a specific length of time, called a term.