7:30 Report on NetStrata- Joint Statement of ACIL, OCN & UOAQ

The Australian Consumers Insurance Lobby (ACIL), Owners Corporation Network of Australia (OCN), and the Unit Owners Association of Queensland (UOAQ) have issued a collective statement in response to the investigative story aired on ABC’s 7:30 Report last night, which highlighted concerning practices associated with NetStrata.

We believe this matter warrants immediate attention and action to ensure the protection of consumer rights and the integrity of the strata and insurance industry. Our release in the below attachments outlines our concerns in detail and requests specific actions to address the issues raised by the report.

Australian Consumers Insurance Lobby Seeks to Unearth and Address Questionable Practices in Strata Insurance Through Nationwide Survey

Following the Australian Consumers Insurance Lobby's (ACIL) recent referral of 146 instances of questionable practices in the Strata Insurance industry to ASIC & ACCC, a nationwide call to action has been initiated to gather comprehensive insights and experiences directly from the community. This initiative aims to catalyse a transformative shift towards transparency, accountability, and fairness in the Strata Insurance sector.

ACIL is leveraging the momentum from the overwhelming response to its revelations to introduce a detailed survey. This effort seeks to document the breadth of questionable activities and the impact they have on individuals, businesses, and the industry at large. "Our objective is to compile a robust evidence base that can inform advocacy for meaningful change and industry reform and ensure that the push for transparency and reform isn't solely carried by ACIL," said ACIL Chairperson Tyrone Shandiman.

The call extends beyond individuals to businesses and other entities that have borne the brunt of illicit practices within the Strata Insurance landscape. "We are particularly eager to hear from businesses that have suffered due to these practices and industry insiders including current and former employees of strata managers, insurance brokers and or other related businesses.," Mr Shandiman emphasised.

ACIL assures complete confidentiality for participants, offering anonymity to those who wish to share their experiences without disclosure of their identity. "We understand the sensitivity of this information and are committed to ensuring the privacy and security of our respondents. Participants have the option to contribute their insights anonymously, with the assurance that their information will be handled with the utmost discretion." Mr Shandiman said.

The survey represents a crucial step towards rectifying longstanding issues within the Strata Insurance sector. Every voice counts. Your story could be the catalyst for significant change, safeguarding others from misconduct and promoting a culture of integrity within the industry. ACIL invites all affected parties to come forward and share their experiences, contributing to a collective effort to enhance the Strata Insurance landscape for the better.

The form will be open until 3rd April 2024.  ACIL urges individuals and businesses alike not to miss this pivotal opportunity to contribute to a safer, more transparent, and equitable Strata Insurance industry. 

The survey is accessible by the link below:

https://forms.office.com/Pages/ResponsePage.aspx?id=vTvxTrx930qtWKgpGuTd7VFeA4KiQChIrOpICplG8lJUMEJTTExPWVFKOEVIT1RYSUxWRDhRWVlGNy4u  

To join our mailing list, follow this link: https://acilobby.us11.list-manage.com/subscribe?u=566e1b0fd7678a364d1cccfd1&id=1cf4a42173

ACIL Exposes Widespread Misconduct in Strata Insurance Appointments, Calls for Regulatory Investigation

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.