Advocacy groups demand probe into NetStrata amid allegations

Advocacy groups demand probe into NetStrata amid allegations | Insurance Business Australia

Insurance News

Advocacy groups demand probe into NetStrata amid allegations

Cases of suspected strata insurance misconduct submitted for regulatory review

Insurance News

By
Roxanne Libatique

A collective demand for inquiry has emerged from several consumer and property advocacy groups in the wake of troubling disclosures on ABC’s 7:30 Report.

The Australian Consumers Insurance Lobby (ACIL), Owners Corporation Network of Australia (OCN), and Unit Owners Association Queensland (UOAQ) are urging the Australian Securities and Investments Commission (ASIC), the Australian Competition and Consumer Commission (ACCC), and New South Wales’ Strata & Property Services Commissioner to initiate a comprehensive investigation into NetStrata and its affiliates’ business methodologies.

These claims have sparked widespread concern over the practices’ compliance with industry standards of transparency and legality.

Calls for regulatory scrutiny on NetStrata

Asserting the critical importance of transparency, equity, and legal adherence in the insurance and strata sectors, the groups have formally sought a probe into NetStrata’s operations. They are particularly interested in:

the appointment process of Strata Insurance Services
the informed consent process
the legal propriety of the actions under various legislative frameworks
the financial repercussions for consumers
the requirement for compensation for those adversely affected by any illicit activities

Suspected misconduct related to strata insurance policies

In an expanded effort, ACIL forwarded 146 instances of alleged wrongdoing related to strata insurance policies to ASIC and ACCC, advocating for an extensive review of the sector.

ACIL chairperson Tyrone Shandiman pointed out the critical nature of the allegations against NetStrata.

“Our demand for a separate inquiry into NetStrata’s operations, distinct from the ongoing reviews already initiated, reflects the critical nature of the allegations and the necessity for prompt and decisive regulatory action,” he said. “We are reassured by ASIC and ACCC’s engagement with our organisation and the evidence we’ve presented and are hopeful of the commencement of a formal investigation.”

OCN executive director Karen Stiles voiced her concerns following the ABC report.

“OCN is deeply troubled by the findings reported on ABC’s 7:30 Report. The revelations underscore a pressing need for enhanced powers and resources for the Strata & Property Services Commissioner to protect consumers effectively,” she said. “We are committed to addressing this issue directly with Minister Anoulack Chanthivong and the Strata & Property Services Commissioner.

“Given the limited number of just 16 inspectors to manage the extensive NSW property portfolio, OCN has noted instances of investigations into serious allegations against a strata manager that have stretched beyond two years without reaching a conclusion. We see this as an invaluable moment to advocate for the necessary changes that will ensure the safety and rights of strata residents.”