Strata Cover Australia :: News
SHARE

Share this news item!

ICA Advocates for Reforms in Victoria's Strata Legislation

Addressing Governance Issues to Mitigate Rising Insurance Costs

ICA Advocates for Reforms in Victoria's Strata Legislation?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 Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, highlighting that poor governance and deferred maintenance are leading to increased insurance premiums for the one in five Victorians residing in strata-titled properties.
In a submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasized that building defects are costing Australians an estimated $1.3 billion annually, with many strata buildings facing challenges in securing affordable insurance due to structural issues and inadequate risk management.

The ICA's recommendations focus on several key areas:

  • Strengthening governance within owners corporations by improving transparency and accountability, combined with targeted education for committee members to address complex financial and insurance matters.
  • Careful review of proposed licensing schemes for strata managers to ensure any new requirements are evidence-based, avoiding unnecessary costs or unintended effects.
  • Full disclosure of payments to strata managers that could influence insurance product selection, with a thorough assessment of market impacts before considering a ban on commissions.
  • Lowering the threshold for collective sales of strata properties to facilitate the renewal of older buildings, mirroring New South Wales's move to a 75% owner agreement.
  • Introducing stronger enforcement mechanisms, such as public complaints registers, to hold owners corporations accountable for defects.

ICA Deputy CEO Kylie Macfarlane stated that as the number of residents in multi-unit buildings grows, managing the expenses linked to strata properties is becoming a more significant issue. She emphasized that effective reforms backed by proper compliance and enforcement are essential to de-risk strata complexes and deliver better outcomes for all stakeholders.

These proposed reforms aim to address the challenges faced by strata communities in Victoria, ensuring that residents have access to affordable and comprehensive insurance coverage while promoting better governance and maintenance practices within the sector.

Published:Tuesday, 17th 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

Netstrata Proceedings Put Strata Insurance Disclosure Under Fresh Scrutiny
Netstrata Proceedings Put Strata Insurance Disclosure Under Fresh Scrutiny
14 Jul 2026: Paige Estritori
NSW Fair Trading’s criminal proceedings against Netstrata have put strata insurance governance back in the spotlight, particularly for owners corporations trying to understand whether their premiums, commissions and service arrangements are being handled transparently. The action, reported on 9 July 2026, alleges the strata manager failed to adequately disclose or manage conflicts of interest and received undisclosed financial benefits. Netstrata has indicated the charges will be defended, so the matter remains before the courts rather than resolved. - read more
New Strata Broking Findings Raise the Bar for Trust
New Strata Broking Findings Raise the Bar for Trust
06 Jul 2026: Paige Estritori
Fresh findings from the Insurance Brokers Code Compliance Committee have added another layer to Australia’s continuing strata insurance transparency debate. The committee’s review of strata broker-agent arrangements examined seven brokers collectively connected to one thousand and eighty-eight strata representatives, and resulted in nine formal breach determinations. Two brokers were also referred to ASIC for consideration of conflict management issues. - read more
Vero’s New Strata Product Signals a Shift in How Complex Risks Are Priced
Vero’s New Strata Product Signals a Shift in How Complex Risks Are Priced
29 Jun 2026: Paige Estritori
Vero has launched a new residential strata insurance product that could prove important for schemes finding it difficult to secure suitable cover, particularly in higher-risk northern markets. The product, introduced on 22 June 2026, is initially available in selected postcodes across Far North Queensland, from Bundaberg North, and Darwin, with a staged national rollout planned over the next year. - read more
Victoria’s Strata Commission Debate Puts Transparency Back in Focus
Victoria’s Strata Commission Debate Puts Transparency Back in Focus
22 Jun 2026: Paige Estritori
Victoria’s owners corporation reform process has put strata insurance commissions back under the microscope, after the state government opted to further examine an expert panel recommendation to ban certain financial benefits paid to owners corporation managers and related entities. - read more


Strata Insurance Articles

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
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
Actuary:
A professional who analyzes the financial costs of risk and uncertainty using mathematics, statistics, and financial theory.