ACIL Chair Shines a Light on Unfair Practices in Strata Industry Webinar

In a pivotal online event, Tyrone Shandiman, Chairperson of ACIL, joined forces with Nikki Jovicic from LookUpStrata to dissect and challenge the unfair practices plaguing the strata industry.

Our latest initiative, a detailed survey conducted by ACIL, tapped into the community to uncover the real stories and statistics behind the questionable operations in the strata sector. In the webinar, Tyrone unveiled the compelling findings of this survey, paving the way for a candid discussion on the need for ethical reform.

This webinar is part of ACIL's ongoing commitment to foster a more transparent, ethical, and consumer-focused strata industry. For those who missed the live session, a recording is available on our website. Join us in this important conversation and help us drive the change that is desperately needed in the strata industry.

ACIL Presents Submission to Government Inquiry, Proposing Standard Definition Enhancements in Insurance Sector

The Australian Consumers Insurance Lobby is delighted to present its submission to the Federal Government Inquiry on Standard Definitions and Standard Cover for Insurance. This submission is a critical step towards fostering a fairer and more transparent insurance market.

At the heart of our proposal is a call for fundamental reforms that prioritise consumer interests and address longstanding challenges such as underinsurance and policy complexity. Our submission highlights the urgent need for action to mitigate the detrimental effects of consumer confusion with insurance policies and underinsurance.

Key highlights of our proposal include:

• Consumer-Centric Principles: We emphasise the importance of focusing on overarching principles rather than intricate definitions to offer greater clarity to consumers. By prioritizing consumer interests, insurers can provide more transparent and equitable coverage options.

• Standardization for Clarity: We advocate for the standardisation of insurance policy terms and definitions to eliminate ambiguity and ensure consistency across policies. This will empower consumers with greater clarity and understanding of their coverage.

• Enhanced Transparency: Insurers should be obligated to provide consumers with fact sheets containing information on commonly declined claims and disputed issues. This transparency will empower consumers with crucial insights into potential claim denials and disputes.

• Proactive Approach to Underinsurance: Insurers must take a proactive role in addressing underinsurance by taking action to ensure adequate coverage levels or, at the very least, notifying consumers of potential underinsurance at policy inception.

• Educational Initiatives: We advocate for educational initiatives to improve consumer understanding of insurance policies and coverage options. Empowering consumers with knowledge will enable them to make more informed decisions about their insurance needs.

ACIL urges policymakers, industry stakeholders, and consumer advocates to support these vital reforms to create a fairer and more consumer-centric insurance market. Together, we can ensure that insurance policies are designed to protect consumers and provide them with the security and peace of mind they deserve.

ACIL Submission Standard Definitions and Standard Cover For Insurance (Final)

.pdf

Download PDF • 718KB

ACIL Releases Comprehensive Report Following Nationwide Survey on Strata Insurance Practices

The Australian Consumers Insurance Lobby Inc (ACIL) is pleased to announce the publication of a significant report following its Nationwide Survey on Questionable Practices in Strata Insurance initiated on 20th March 2024. This detailed report compiles insights from a broad spectrum of responses into a clear summary, pinpointing major concerns and outlining ACIL's path forward for advocacy and reform in the strata insurance industries.

ACIL Chair Tyrone Shandiman commented on the survey's success, stating “ACIL is delighted by the strong response to our Strata Insurance survey, with 87 participants exceeding our expectations. This high level of engagement, especially from those within the industry, signals a commendable readiness to confront and rectify the issues plaguing the strata insurance sector. It's particularly encouraging to see significant input from industry insiders, with some of the most revealing insights coming from these individuals, including an anonymous tip-off that brought to light the questionable practices of a previous employer. "

Key Report Findings:

• New Revelations: The survey revealed additional concerns, including supply chain ownership conflicts and identified bad actors—five strata managers and five insurance brokers—now under ACIL’s investigation, likely leading to further referrals to ASIC & ACCC.

• Regulatory Confusion: There's evident confusion among participants about which body properly regulates the industry, underscoring the need for clarity on governance and oversight.

• Challenges in the Competitive Landscape: Findings indicate a troubling industry environment where ethical conduct is often penalised, and questionable and unlawful practices are incentivised, pointing to a systemic issue that goes beyond individual bad actors.

• Criticism of the SCA: There is a notable dissatisfaction with the SCA, with some survey respondents calling for significant reforms or even the organisation's complete overhaul, reflecting broader discontent with current industry standards.

• Broader Industry Concerns: The survey underscores that the issues extend well beyond strata insurance alone, advocating for a more extensive examination of the strata management industry to address a wider range of consumer concerns.

• Advocacy for Government Inquiry: ACIL emphasises the urgent need for a government-led inquiry to provide clear guidance on disputed practices. Such an initiative is deemed essential for enabling strata managers to operate with greater confidence and for empowering consumers to make well-informed decisions.

The findings from this survey paint a concerning picture of the questionable practices and systemic challenges faced by the industry, advocating for improved transparency, accountability, professionalism and ethical practices, placing consumer interests at the forefront of all decisions.

With the release of this report, ACIL seeks to drive substantial reform, aiming for an industry that upholds the highest standards of integrity and fairness. The document not only highlights the need for change but also proposes a roadmap for ACIL’s continued efforts to safeguard consumer rights and interests nationwide.

ACIL Report - Strata Voices Heard (Final)

.pdf

Download PDF • 944KB