ICA Advocates for Strata Law Reforms to Mitigate Rising Insurance Costs in Victoria
ICA Advocates for Strata Law Reforms to Mitigate Rising Insurance Costs in Victoria
0
The Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, citing a direct link between inadequate governance and escalating insurance premiums for residents.
With approximately one in five Victorians living in strata-titled properties, the need for effective management and oversight has become increasingly critical.
In its submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA highlighted that building defects are costing Australians an estimated $1.3 billion annually. Poor governance and deferred maintenance are transforming insurable buildings into high-risk liabilities, leading to higher premiums and, in some cases, rendering properties uninsurable.
The ICA's recommendations focus on several key areas:
Enhanced Governance and Education: Improving transparency and accountability within owners corporations, coupled with better educational resources for committee members, to effectively manage complex financial, maintenance, and insurance matters.
Review of Licensing Schemes: Carefully evaluating proposed licensing requirements for strata managers to ensure they are evidence-based and do not impose unnecessary costs or unintended consequences.
Disclosure of Commissions: Mandating full disclosure of any payments to strata managers that could influence insurance product selection, with a thorough assessment of market impacts before considering a ban on commissions.
Facilitating Building Renewal: Lowering the threshold for collective sales of strata properties to facilitate the renewal of older buildings, similar to reforms in New South Wales.
Strengthening Enforcement Mechanisms: Introducing stronger enforcement tools, such as public complaints registers, to hold owners corporations accountable for building defects and maintenance issues.
These proposed reforms aim to address the root causes of rising insurance costs by promoting better governance and proactive maintenance within the strata sector. By implementing these changes, the ICA believes that insurance affordability and availability can be improved for the significant portion of Victorians residing in strata-titled properties.
For strata property owners and managers, staying informed about these potential legislative changes is crucial. Engaging with industry bodies, participating in educational programs, and adopting best practices in governance and maintenance can help mitigate risks and contribute to more stable insurance premiums.
Published:Sunday, 21st Dec 2025 Source: Paige Estritori
CHU, Australia's leading strata insurance underwriting agency, has significantly increased its capacity to underwrite individual strata risks, now offering coverage up to $690 million. This substantial rise from the previous limit of $300 million is a strategic response to the evolving landscape of strata developments, which are becoming larger and more complex. - read more
The Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, citing a direct link between inadequate governance and escalating insurance premiums for residents. With approximately one in five Victorians living in strata-titled properties, the need for effective management and oversight has become increasingly critical. - read more
The Australian construction insurance market has experienced a notable shift in 2025, with premiums decreasing across various lines due to intensified competition among insurers. According to Marsh's Construction Insurance Market Update 2025, the first half of the year saw average premium reductions ranging from 5% to 15%, marking a significant departure from the upward trend observed in 2024. - read more
Australia's construction sector continues to grapple with elevated cost pressures, prompting builders to reassess their insurance and risk management strategies. Gallagher reports that overall construction costs have increased by over 30%, influenced by supply chain disruptions, inflation, and labour shortages. - read more
The South Australian Government has taken decisive action to bolster homeowner protection in response to a surge in builder insolvencies. Effective from 1 October 2025, the maximum insurance payout for homeowners will increase from $150,000 to $250,000. This measure aims to provide greater financial security to homeowners left with incomplete or defective properties due to builder failures. - read more
The insurance industry has long grappled with inconsistencies and varying quality in expert reports, which are pivotal in claims assessments. In response, the Association of Insurance Building & Engineering Consultants (AIBEC) has been established to address these challenges and elevate industry standards. - read more
Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
New Zealand's farming community forms the backbone of its thriving agricultural sector, yet many overlook the critical importance of proactive estate planning. With farmland often being held within families for generations, securing its future is not just a financial concern, but a deeply personal one as well. - read more
In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
Farming, at its core, is an enterprise fraught with uncertainty. Weather calamities, pests, diseases, and fluctuating market conditions can all impact the output and quality of produce. This is where crop insurance proves its worth, serving as a safety net for farmers against the myriad risks they face each season. - read more
In the dynamic world of Australian agriculture, farm equipment plays a crucial role in the day-to-day operations of farms. From tractors to harvesters, having the right machinery means managing your farm more efficiently. However, the high value of this equipment makes it essential to protect it adequately through insurance. - read more
Those who work the land know that every farm has its own heartbeat - its unique rhythm defined by the crops it yields, the livestock it nurtures, and the natural environment it exists within. Recognizing this individuality is crucial, especially when it comes to safeguarding your agricultural investment with the right insurance policy. - read more
In the heart of New Zealand's pastoral verdure, the significance of preparedness for natural disasters is paramount for the farming industry. The distinct landscape, while providing an idyllic backdrop for agricultural pursuits, is not without its challenges. Farmers are often at the mercy of nature's unpredictability, making disaster preparedness not just prudent but essential for the continuity of their livelihood. - read more
Farming is a vital part of New Zealand's economy and cultural heritage, representing a way of life for thousands across the country. With its unique landscapes and diverse climate, New Zealand farmers are renowned for producing a wide array of high-quality products that serve not only the nation's needs but also supply a multitude of international markets. - read more
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Grace Period: A time period after the premium is due during which an insurance policy remains in force even if the premium has not yet been paid.
