Strata Consumers Secure Major Reforms in NIBA's Final Insurance Brokers Code

Consumer groups welcome a significant change in direction from the insurance broking industry, with new protections addressing unauthorised broker appointments, remuneration transparency and conflicts of interest.

The Australian Consumers Insurance Lobby (ACIL), Owners Corporation Network (OCN) and Unit Owners Association of Queensland (UOAQ) have welcomed significant consumer protections in the final 2027 Insurance Brokers Code of Practice, released by the National Insurance Brokers Association (NIBA).

The reforms represent an important breakthrough following years of advocacy by the three organisations, which have repeatedly raised concerns about conflicts of interest, commission-sharing arrangements and transparency in Australia's strata insurance market.

In July, the consumer groups publicly walked away from NIBA's consultation process, expressing disappointment that the proposed Code failed to adequately address fundamental consumer protection concerns.

Today, the organisations are acknowledging a significant change in direction and congratulating NIBA for listening to consumers.

A major win for strata consumers

One of the most significant reforms requires insurance brokers to take reasonable steps to confirm they have the owners corporation's authority before accepting an appointment through a strata manager.  ACIL Chair Tyrone Shandiman said this was a major breakthrough.  "We have witnessed bulk transfers of strata insurance clients between brokers, where we believe decisions were driven by the remuneration offered to strata managers rather than the interests of the owners corporations.  These arrangements can leave consumers disadvantaged, often without meaningful involvement in choosing who represents them.  The owners corporation is the client. It is their insurance, their money and their decision about who represents them."

Other important improvements include requirements to disclose commissions, fees, rebates and other benefits passed to strata managers, and a prohibition on acting where conflicts of interest cannot be appropriately managed. 

OCN Co-Managing Director David Glover welcomed the greater transparency. "Owners corporations have the right to know who is being paid, how much they are receiving and whether financial arrangements could influence insurance decisions. These reforms are an important step towards greater accountability."

UOAQ President Mike Murray said the changes would benefit Queensland unit owners "Insurance is a significant expense for unit owners. These protections will help ensure greater transparency and that the interests of bodies corporate remain central to insurance decisions."

From walking away to welcoming reform

Mr Shandiman said the organisations' position represented a major turnaround from July. "When we walked away from the consultation, we were frustrated after years of raising these concerns without seeing sufficient progress. But advocacy must also recognise progress when it happens. NIBA has listened and it deserves credit for the meaningful improvements made to the final Code.”

"While further reforms are needed, particularly around complex commercial relationships and dual-role conflicts, this is a genuine win for strata consumers and demonstrates the value of persistent consumer advocacy."

The new Code commences on 1 January 2027, with transitional arrangements applying to certain obligations.