ICA Advocates for Overhaul of Victoria's Strata Legislation
ICA Advocates for Overhaul of Victoria's Strata Legislation
0
The Insurance Council of Australia (ICA) has recently called for significant reforms to Victoria's strata legislation, highlighting concerns that poor governance and deferred maintenance are contributing to increased insurance premiums for the state's strata property owners.
This appeal underscores the pressing need for legislative updates to enhance the management and maintenance of strata-titled properties.
According to the ICA, approximately one in five Victorians resides in strata-titled properties. Many of these residents are facing higher insurance costs or difficulties in securing coverage due to governance issues and delayed maintenance. The ICA's submission to the Expert Panel Review of the Owners Corporations Act 2006 emphasizes that building defects in residential apartments are costing Australians an estimated $1.3 billion annually. Without reform, more buildings could become uninsurable or face unaffordable premiums as a result of structural problems and insufficient risk management.
The ICA's recommendations focus on several key areas:
Enhanced Governance: Strengthening the governance within owners corporations by improving transparency and accountability. This includes targeted education for committee members to better manage complex financial and insurance matters.
Licensing of Strata Managers: A careful review of proposed licensing schemes for strata managers, ensuring that any new requirements are evidence-based to avoid unnecessary costs or unintended effects.
Disclosure of Commissions: 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.
Facilitating Building Renewal: 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.
Enforcement Mechanisms: Introducing stronger enforcement mechanisms, such as public complaints registers, to hold owners corporations accountable for defects.
These proposed reforms aim to address the root causes of rising insurance premiums by improving the overall management and maintenance of strata properties. Effective reforms backed by proper compliance and enforcement are essential to de-risk strata complexes and deliver better outcomes for all stakeholders.
As the number of residents in multi-unit buildings continues to grow, managing the expenses linked to strata properties becomes increasingly significant. The ICA's call for legislative reform is a proactive step towards ensuring that strata living remains a viable and affordable option for Victorians.
Published:Friday, 13th Mar 2026 Source: Paige Estritori
In a significant development for Australian small and medium-sized enterprises (SMEs), BizCover has announced the addition of Zurich's Professional Indemnity (PI) insurance product to its online platform, effective from 3 March 2026. This collaboration aims to provide SMEs with enhanced access to comprehensive PI coverage, addressing a critical need in the business community. - read more
In a significant development for the Australian insurance market, Markel, a US-based specialty insurer, has launched professional indemnity (PI) insurance products tailored specifically for Australian businesses. This strategic move comes in response to a notable reduction in PI insurance capacity over recent years, leaving many professionals seeking reliable coverage options. - read more
Sterling Insurance has successfully secured a new professional indemnity (PI) binding authority with Lloyd's, a move that promises to provide Australian brokers with greater control over product offerings and pricing structures. This development is part of Sterling's ongoing commitment to delivering tailored insurance solutions that meet the specific needs of niche and complex risk sectors. - read more
CHU, Australia's leading strata insurance underwriting agency, has unveiled its 2025 State of the Strata Market report, offering a comprehensive analysis of the current landscape and future outlook for the strata industry. This report is particularly relevant for property owners and investors seeking to navigate the evolving strata insurance environment. - read more
The Insurance Council of Australia (ICA) has recently called for significant reforms to Victoria's strata legislation, highlighting concerns that poor governance and deferred maintenance are contributing to increased insurance premiums for the state's strata property owners. This appeal underscores the pressing need for legislative updates to enhance the management and maintenance of strata-titled properties. - read more
The New South Wales government has taken a significant step towards enhancing transparency within the strata management sector by introducing legislation that imposes the nation's strictest disclosure obligations on strata managers concerning insurance commissions. This move aims to address longstanding concerns about opaque financial arrangements that have been perceived to disadvantage apartment owners. - 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
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
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
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
Welcome to our in-depth exploration of Machinery Breakdown Insurance—a safety net that's becoming increasingly important for the modern Australian farmer. Whether you're involved in cropping, dairy, or livestock, your equipment is the backbone of your operation. As farming technology evolves, the machinery becomes more sophisticated, and unfortunately, the more complex a system is, the more that can go wrong. This is where Machinery Breakdown Insurance comes into play. - read more
Farm liability insurance is a type of coverage that protects farmers from financial losses due to legal claims and lawsuits. This insurance is crucial for safeguarding your farm against various liabilities that may arise from farm operations. - 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
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
Need a Quote?
Start your free farm insurance quote comparison here.
Knowledgebase
Aggregate Limit: The maximum amount an insurer will pay for all covered losses during a policy period.
