Industry first complete review of strata insurance – here’s everything you need to know!
SCA (QLD) has been consistently promoting how crucial the role of a body corporate manager is to the running of a scheme, and this report has confirmed that. It was revealed that strata managers perform 47 critical functions in the insurance supply chain alone. These cover a multitude of areas including negotiation, claims management and quote services. Some of the key statistics that came out of the report include:
- In 2020, over 165,000 Australian bodies corporate paid over $830 million in strata insurance premiums. On top of this they paid a whopping $230 million in duties, levies and taxes. This represents nearly 28% of the total cost of insurance.
- The average strata premium increased from $3305 in 2016 to $5017 last year, representing an overall rise of 12% during the period. Similarly, the total cost of insurance has on average risen from $4320 to $6522 over the same time
- Storm damage ($438 million), water damage ($362 million) and fire damage ($248 million) were the top three claims costs by loss for the 2016-2020 period
This report will be a driving force behind future advocacy work for SCA (QLD), particularly regarding issues faced by our North Queensland members.
In response to increased attention on strata insurance affordability and availability, regulation and the role of strata managers in strata insurance, SCA identified a need for a comprehensive, data-driven report detailing strata insurance in Australia and New Zealand, SCA commissioned Dr Nicole Johnston, Senior Lecturer in the Department of Finance at Deakin Business School, to produce an industry-first report providing in-depth social and economic analysis of the strata industry. The purpose of the report is to aid consumers, governments, and the broader community in understanding key elements of the industry, and inform SCA’s advocacy platform for shaping the future of the industry.
The report, A data-driven holistic understanding of strata insurance in Australia in New Zealand, was launched 7 September 2021 and is available for download.
Article first published by Strata Community Association QLD on 9/9/21