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.