Disclosure

BEST PRACTICE — STRATA INSURANCE DISCLOSURE

CONSUMER FACT SHEET — FAQ

What do strata managers do in relation to strata insurance and why do they receive remuneration?

Strata managers undertake or participate in 47 different services in relation to strata insurance to their clients, including, but not limited to:

Quotation
Procurement
Placement and renewal
Claims management
Insurance record keeping
Correspondence
Negotiation and liaison
Advice based on insurance knowledge

The value of strata manager and insurance brokers in the insurance process

The knowledge and experience the strata manager holds of the insurance landscape as well as the building is an asset to the strata committee and the policy outcome.

Increased legislative and regulatory requirements, along with buildings which are often complex, mean strata manager and broker expertise is incredibly valuable.

Insurance brokers provide general and personal advice, drawing on their specialist skills and working closely with the strata manager when involved.

Specialist brokers work to understand the unique aspects of the building being insured and provide a tailored quote based on the building’s particular set of circumstances.

A Yellow Car Is Parked On The Street Next To A Large Building — Wollongong Strata in Corrimal, NSW

Two Women Sit with Notebook Holding in Hand — Wollongong Strata in Corrimal, NSW

What is strata insurance remuneration?

Strata insurance remuneration is the total value of the remuneration paid to the parties involved in the process of insuring a strata building.

Who is paid strata insurance remuneration?

The two most common parties who receive remuneration will be the strata manager and the insurance broker, however who receives remuneration is based on the arrangement the strata committee chooses:

Many use a strata manager who works closely with one or more insurance brokers.
Some contact an independent broker to aid their insurance choice.
Some strata communities choose to take out insurance directly with insurers.

Do strata communities have choice about remuneration models?

Yes. Strata communities have the choice of several remuneration models, and it is advisable if they wish to alter their current remuneration model to discuss it with their strata manager to fully understand their personal circumstances.

Are all parties who are remunerated as part of the insurance process listed in this section?

Yes. No matter which remuneration model is chosen, all parties who are involved in the insurance process will usually receive remuneration, and you will receive details about how much remuneration they receive.

What about potential conflicts of interest or business arrangements?

If any parties to the insurance process have conflicts of interest, or are receiving other remuneration as part of the transaction, they will list it clearly.

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A Large Apartment Building With The Ocean And Mountains In The Background — Wollongong Strata in Corrimal, NSW

What is strata insurance remuneration?

Strata insurance remuneration is the total value of the remuneration paid to the parties involved in the process of insuring a strata building.

Who is paid strata insurance remuneration?

The two most common parties who receive remuneration will be the strata manager and the insurance broker, however who receives remuneration is based on the arrangement the strata committee chooses:

Many use a strata manager who works closely with one or more insurance brokers.
Some contact an independent broker to aid their insurance choice.
Some strata communities choose to take out insurance directly with insurers.

Do strata communities have a choice about remuneration models?

Are all parties who are remunerated as part of the insurance process listed in this section?

What about potential conflicts of interest or business arrangements?

If any parties to the insurance process have conflicts of interest, or are receiving other remuneration as part of the transaction, they will list it clearly.

Get In Touch

Provision of entertainment, Christmas gifts and other benefits permitted by law aimed at enhancing networking within the strata industry, with a view to us and our staff familiarising ourselves with a broad range of participants in the strata industry and the services they provide and in so doing enhance access to and efficient utilisation of the services of potential suppliers to clients.

With respect to commissions and rebates payable by suppliers of insurance and other goods and services to you arising from placement of business by us on your behalf. we will be entitled to retain any insurance either as commissions or rebates received by us which have been disclosed to you and approved by you.

We expect to receive monetary commissions, training services, gifts or other benefits connected with the performance of our functions or our provision of services to you as strata managing agent, i.e. benefits linked to us engaging suppliers to you and we estimate that such benefits will have the value specified in the attached Commission Schedule during the 12 month period commencing on the date of this agreement.

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