Brokers and advocates call for public strata inquiry

Brokers and advocates call for public strata inquiry | Insurance Business Australia

Insurance News

Brokers and advocates call for public strata inquiry

“Systemic harmful practices”

Insurance News

By
Daniel Wood

In response to last night’s damning ABC Four Corners’ report on the strata industry, a coalition of consumer advocacy groups, including insurance brokers, has called on the federal government to launch a public inquiry.

A media release cited “systemic harmful practices within the industry that compromise consumer rights and community expectations.”

Tyrone Shandiman (pictured above), chair of the Australian Consumers Insurance Lobby (ACIL), said his group has already documented 146 cases of wrongdoing involving brokers and strata managers. He said ACIL is investigating other cases of alleged “significant misconduct”.

In the release, Karen Stiles from the Owners Corporation Network of Australia, referred to “an alarming trend in strata management practices that are not only unethical but potentially unlawful.”

Stiles said the lack of transparency and accountability in the current system has left many apartment owners vulnerable.

“We need a thorough inquiry that not only highlights these issues but also leads to substantial reforms,” she said.

The coalition made their call in a letter to Federal Treasurer Jim Chalmers.

Proposed scope of strata inquiry

According to their release, the scope of the inquiry should include:

Assessing the transparency of remuneration models and the adequacy of existing regulation
Evaluating the effectiveness of consumer protection mechanisms and the need for reform
Evaluating the role of industry bodies and the adequacy of government oversight in enforcing legal and ethical standards
Referring instances of unlawful activity for appropriate enforcement action.

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