NIBA responds to strata crisis

NIBA responds to strata crisis | Insurance Business Australia

Insurance News

NIBA responds to strata crisis

Ethical conduct “vital”

Insurance News

By
Daniel Wood

The National Insurance Brokers Association (NIBA) has released a media statement in response to the strata crisis uncovered by the ABC Four Corners programme. The statement said “it is vital” that strata service providers “are acting ethically and in the best interests of strata communities.”

“Addressing professionalism, disclosure and transparency within the market is key to delivering better outcomes for consumers, including strata owners and the sector as a whole,” said the statement.

The release also mentioned the role of insurance brokers supporting owners’ corporations “navigate the complex strata insurance landscape.”

The statement said the 2022 Insurance Brokers Code of Practice (the Code) requires brokers to disclose commissions and fees on retail strata policies.

“In providing this information, insurance brokers are able to clearly communicate with owners to allow them to make an informed decision about their insurance arrangements and services,” said the statement.

Code review is underway

Richard Klipin (pictured above), NIBA’s CEO, is currently overseeing a review of the Code. The disclosure of commissions and fee transparency are key issues.

The Four Corners investigation documented hundreds of cases where apartment owners received bills from their strata insurance service providers that lacked transparency.

What can be done to improve service to apartment owners and fee transparency in the strata sector? Please tell us below