Consumer Advocates Push for Ban on Strata Insurance Commissions in NSW
Consumer Advocates Push for Ban on Strata Insurance Commissions in NSW
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Consumer advocacy groups, including the Australian Consumers Insurance Lobby (ACIL) and the Owners Corporation Network (OCN), are urging the New South Wales (NSW) Government to implement a ban on commissions related to strata insurance.
They argue that such commissions create conflicts of interest and compromise transparency within the strata management sector.
The call for reform has intensified following reports that PICA Group, Australia's largest strata management company, threatened to withdraw from the Strata Community Association (SCA) NSW over the association's stance on commission reform. PICA Group expressed concerns that eliminating commissions could lead to higher costs for consumers and proposed an alternative model involving fixed fees paid by insurers.
ACIL and OCN contend that the current commission-based system undermines consumer trust and leads to inflated premiums. They emphasize the need for the NSW Government to take decisive action to protect property owners and ensure fair practices within the industry.
For strata property owners and managers, this ongoing debate highlights the importance of staying informed about potential regulatory changes that could impact the financial and operational aspects of strata living.
For more details on this development, refer to the full article.
Published:Wednesday, 19th Nov 2025 Source: Paige Estritori
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Knowledgebase
Depreciation: The reduction in the value of an asset over time, used in insurance to calculate the actual cash value of property.
