In a significant move aimed at safeguarding consumers, ACIL has recently identified and reported to both Australian Securities and Investments Commission (ASIC) and the Australian Competition & Consumer Commission (ACCC), 146 examples of what we believe constitutes misconduct involving the unlawful appointment of insurance brokers by strata managers for strata insurance policies.
Our investigations suggest a disturbing trend where strata managers have been implicated in financially benefiting from the switching of insurance policies to brokers who then levy exorbitant fees and commissions. This occurs without the informed consent of the insured parties, leading to substantial financial detriment. ACIL's findings indicate that these practices have contributed to consumer financial losses in excess of $240 million.
The gravity of the situation has prompted ACIL to urge ASIC and ACCC to not only scrutinise the 146 reported examples but to also embark on a broader, industry-wide investigation. It is ACIL's stance that such a comprehensive inquiry will uncover widespread instances of unlawful activities perpetrated by strata managers in the arrangement of insurance, underscoring the need for immediate and decisive regulatory action.
To shed further light on these concerning practices and their impact on consumers, ACIL has produced an informative video detailing our findings and the steps we have taken in representing these issues to ASIC and ACCC. We invite all stakeholders and the general public to view this video to gain a deeper understanding of the significant consumer rights issues at play. Click here to view the video https://youtu.be/gd5Pim06aE4.
ACIL is steadfast in its commitment to protecting consumer interests and upholding the principles of transparency, choice, integrity, and accountability within strata insurance practices and the broader insurance industry.