ICA Advocates for Strata Law Reforms to Mitigate Rising Insurance Costs in Victoria
ICA Advocates for Strata Law Reforms to Mitigate Rising Insurance Costs in Victoria
0
The Insurance Council of Australia (ICA) has recently called for substantial reforms to Victoria's strata legislation, citing a direct correlation between inadequate governance and escalating insurance premiums for residents.
With approximately one in five Victorians residing in strata-titled properties, the need for effective management and oversight has become increasingly critical.
In its submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA highlighted that building defects are costing Australians an estimated $1.3 billion annually. These defects, coupled with deferred maintenance and poor governance, are transforming insurable buildings into high-risk liabilities, thereby driving up insurance costs and, in some cases, rendering properties uninsurable.
The ICA's recommendations focus on several key areas:
Enhanced Governance and Education: Implementing stronger transparency and accountability measures within owners corporations, along with targeted education programs for committee members, to improve financial and insurance decision-making.
Licensing and Compliance: Reviewing proposed licensing schemes for strata managers to ensure they are evidence-based and do not impose unnecessary costs or unintended consequences.
Disclosure of Commissions: Mandating full disclosure of any payments to strata managers that could influence insurance product selection, with a thorough assessment of market impacts before considering a ban on commissions.
Facilitating Building Renewal: Lowering the threshold for collective sales of strata properties to enable the renewal of aging buildings, thereby reducing insurance risks associated with structural issues.
Strengthening Enforcement Mechanisms: Introducing public complaints registers and other enforcement tools to hold owners corporations accountable for building defects and maintenance issues.
These proposed reforms aim to create a more resilient and transparent strata sector in Victoria, ultimately protecting property owners from escalating insurance costs and ensuring the long-term viability of strata-titled properties.
Published:Monday, 23rd Feb 2026 Source: Paige Estritori
In its recently released 2025 State of the Strata Market report, CHU, Australia's leading strata insurance underwriting agency, provides a comprehensive analysis of the current state of the industry. The report indicates that strata insurance premiums have experienced a modest increase of 2.8%, rising from an average of $954 to $981 per lot annually in the year leading up to June 2025. This increment is notably lower than the 14% surge observed in house insurance premiums during the same period. - read more
The Insurance Council of Australia (ICA) has recently called for substantial reforms to Victoria's strata legislation, citing a direct correlation between inadequate governance and escalating insurance premiums for residents. With approximately one in five Victorians residing in strata-titled properties, the need for effective management and oversight has become increasingly critical. - read more
Strata communities are at the forefront of Australia's resilience battle, facing escalating costs, declining coverage, and prolonged recovery periods following disasters. Strata Community Association Australasia (SCA) has expressed strong support for the Insurance Council of Australia's (ICA) recent call for coordinated, long-term resilience reforms to protect communities from these challenges. - read more
Allianz Australia has been honoured with the top accolade in the Comprehensive Home Insurance category at the 2026 Finder Product Awards. This recognition underscores the company's dedication to delivering high-quality insurance solutions tailored to the needs of Australian homeowners. - read more
Australian homeowners are facing a growing protection gap as escalating home insurance premiums render adequate coverage increasingly unaffordable. Recent data indicates that average home insurance premiums have risen by 16% over the past year, with some insurers implementing hikes exceeding 30%. - read more
Income protection insurance serves as a financial safety net, designed to support individuals in the event that they are unable to work due to illness or injury. The significance of this type of insurance lies in its ability to provide a continuation of income during tough times, ensuring that one's financial responsibilities are taken care of. - read more
If you are like most people on this planet, you are not financially free. You would not be able to stop working and still support yourself and your family from your financial resources. Your continued ability to work to earn an income would therefore be one of your greatest assets. - read more
Income protection insurance is a safeguard for your financial stability, designed to provide peace of mind when you most need it. As a healthcare professional, you’re dedicated to caring for others, but it’s essential to protect your own income against unexpected events. - read more
Life insurance is a crucial part of any comprehensive financial plan, providing peace of mind that your loved ones will be financially secure in the event of your passing. - read more
Income protection insurance is a type of policy designed to provide you with a safety net in case you’re unable to work due to illness or injury. The concept hinges on securing a portion of your earned income when adverse health conditions impede your ability to generate revenue through your profession. This protection becomes a financial bulwark, ensuring that despite unforeseen health challenges, your livelihood is safeguarded and your lifestyle can be maintained as closely as possible to your current standard. - read more
Start Here !
Apply now for your free Income Insurance assessment and price
comparisons!
All quotes are provided free and without obligation. We respect your privacy.
Knowledgebase
Underwriting: The process by which an insurer determines the risk of insuring a client and decides the terms of coverage.