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:

Insurance News

Navigating the Rise in Strata Insurance Premiums: Causes and Solutions
Navigating the Rise in Strata Insurance Premiums: Causes and Solutions
30 Apr 2026: Paige Estritori
In recent years, many Australian strata property owners have faced significant increases in insurance premiums, with some experiencing hikes of 40-80% since 2022. Understanding the underlying causes of these increases is crucial for developing effective strategies to manage and mitigate costs. - read more
Consumer Advocates Call for Ban on Conflicted Strata Broker Payments
Consumer Advocates Call for Ban on Conflicted Strata Broker Payments
30 Apr 2026: Paige Estritori
Consumer advocacy groups are urging the National Insurance Brokers Association (NIBA) to explicitly prohibit conflicted remuneration arrangements in strata insurance. This call comes amid concerns that such financial practices may compromise the interests of strata property owners. - read more
Potential Crisis Looms Over Strata Industry Amid Proposed Insurance Commission Reforms
Potential Crisis Looms Over Strata Industry Amid Proposed Insurance Commission Reforms
30 Apr 2026: Paige Estritori
The strata management sector in Australia is at a crossroads, with proposed reforms to eliminate insurance commissions sparking concerns about the industry's future viability. Bobby Lehane, CEO of PICA Group, has issued a stark warning that removing these commissions could lead to a decline similar to that experienced by the aged care industry. - read more
NSW Productivity Commissioner Advocates for Immediate Ban on Strata Manager Commissions
NSW Productivity Commissioner Advocates for Immediate Ban on Strata Manager Commissions
22 Apr 2026: Paige Estritori
In a significant development for New South Wales' housing sector, Productivity Commissioner Peter Achterstraat has called for the prompt elimination of commissions received by strata managers. This recommendation aims to bolster transparency and affordability within the state's burgeoning strata housing market. - read more


Strata Insurance Articles

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
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
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

Knowledgebase
Liability Insurance:
Insurance that provides protection from claims arising from injuries or damage to other people or property