472. What I Didn’t See Coming in Strata in 2025
Podcast: Play in new window | Download
Subscribe: RSS
I’m wrapping up 2025 with the 5 strata surprises I didn’t see coming – not the headline stuff, but what I’ve been seeing on the ground with real owners, real committees and real disputes.
This episode is an edited replay of Friday’s LIVE chat (so you’ll hear me responding to comments as we go).
From the rapid shift on insurance commissions to the underwhelming rise of AI, plus the one issue I cannot believe we’re still fighting about…
Links Mentioned:
- Get the transcript here!
- Podcast Episode 470. The “Soft Market” Advantage: How to Secure Better Insurance Cover Now
- Insurance News Article
- Strata Commissions Review | New South Wales Productivity and Equality Commission
- Download your copy of the Special Report here
- Section 106 – Duty of owners corporation to maintain and repair property – Strata Schemes Management Act 2015 (NSW)
- Watch the full LIVE on YouTube here
Here is my version of an explanation why insurance premiums went down.
Before, when Strata Managers were taking commissions proportional to the premium, there was a conflict of interests. Strata managers were interesed in higher premiums for higher commissions. The brokers tend to offer higher premiums knowing that strata managers would be working hard pushing overprices insurances through the committees.
Now, when there are no commissions, the rules reversed. Now, the brokers are offering lower premiums, knowing that the lower premiums would result in higher chances of these insurance policies accepted.
Regards, Alex
Alex you are absolutely spot on. Strata Managers and Brokers are rewarded better for higher premiums and have no reason to reduce premiums as it is a closed market. Our Strata Manager uses the excuse that insurance premiums go up and down – Ours has only increased over every year for the last 15 years that our strata manager has been around! Also note only One Insurance Broker is engaged by our Strata Manager so the incensitised quoting comes into play. If the Strata Manager really wanted the best outcome for the Owners Corporation he would engage with 3 different Brokers and may the best one win! Totally corrupt practices in my opinion. Also SCA NSW works on behalf of the Strata Manager and not the Owners Corporation.