Insurance Council of Australia Advocates for Strata Law Reforms to Mitigate Rising Premiums

In a submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasized that building defects cost $1.3 billion annually for residential apartments across Australia. Many strata buildings are facing insurance affordability challenges or becoming uninsurable due to structural issues and inadequate risk management.

The ICA's recommendations include lowering the unanimous agreement threshold for strata complex sales to enable faster renewal of aging, uneconomic buildings that pose insurance risks. Additionally, the council advocates for full disclosure of all payments to strata managers that may influence insurance product selection. They also suggest conducting a thorough market impact assessment before banning commissions to avoid unintended premium increases.

These proposed reforms aim to enhance transparency, improve building maintenance, and ultimately reduce insurance costs for strata property owners. By addressing the root causes of rising premiums, the ICA seeks to create a more sustainable and affordable strata living environment for Victorians.