In some instances, these fees were up to six times the typical industry rate, with charges reaching as high as 148% of the base insurance premium. This has led to feelings of betrayal among property owners who trusted Netstrata to manage their strata schemes ethically and transparently.
Industry experts have expressed alarm over these findings, noting that standard brokerage fees typically range between 20% to 25% of the base premium. The significantly higher fees charged by Netstrata's insurance arm, Strata Insurance Services (SIS), have raised questions about the firm's disclosure practices and the potential financial impact on clients.
Former employees have alleged that Netstrata established SIS as a means to circumvent disclosure requirements, allowing the firm to charge higher fees without informing clients. This has prompted calls for stricter regulations and greater transparency within the strata management industry to protect property owners from similar practices.
Property owners are encouraged to review their insurance invoices carefully, seek full disclosure from their strata managers, and consider obtaining independent advice to ensure they are not overpaying for insurance coverage. Transparency and ethical practices are essential to maintaining trust and ensuring fair treatment within the strata management sector.
