Forget the Strata Sector’s Reaction … What’s the Insurance Sector Doing ?

Strata citizens are pretty myopic.

They see only their own small strata spaces and sometimes forget that there are a lot more properties, businesses, and goods and services suppliers operating outside the boundaries of their strata territories.

So, whilst we’ve said that it’s for strata stakeholders to solve the problems the 2024 Strata Insurance Commission Crisis has highlighted, we’re also watching what outsiders are saying, thinking and doing as that’s a good way to conduct some reality checking.

So, this article in Insurance News by John Deex called Turning Up the Volume caught our attention.

That’s because it’s about what the National Insurance Brokers Association [NIBA] Chief Executive, Richard Kilpin, says about strata insurance crisis, including the following instructive comments and what they suggest for strata citizens.

First, he says that ‘It’s no good waiting for a crisis and then trying to figure out who to speak to’ pointing to the ABC News focus on strata intermediaries [by which he means strata managers]. The comments suggest that strata managers have caused or allowed the crisis to happen, but brokers need to act to decide what to do in relation to strata manager relationships.

Second, he states that the ABC News expose focused on strata manager misconduct but that brokers were caught in the crossfire. This comment suggests that he [and NIBA] see the strata insurance commission issue as a problem caused by strata managers and not brokers and that brokers should avoid getting involved in it.

Third, he comments that the ABC News reporting and issues ‘pose a very real risk to the reputation of the entire industry’. This comment suggests he’s really only concerned about broker reputations, plus there’s a bit more blame game here.

Fourth, Richard also says that brokers need to be part of the conversation about strata insurance issues and that ‘brokers are seeing clients everyday – whether owners’ committee or strata organisations – they’re really what the issues are, what can be fixed and how best to fix it’. These comments suggest NIBA won’t let strata managers, strata buildings or strata owners decide on things and that NIBA will use its political and commercial influence to guide outcomes. And, NIBA is pretty influential [more influential than any Australian strata groups or organisations].

So, it looks to us like NIBA and its Chief Executive are seeking to contain the crisis to strata managers and apportioning blame to strata managers’ conduct, trying to distance brokers from the problems and causes, but also wanting to control what changes occur using NIBA’s resources in the best interests of brokers.

So, perhaps myopic strata stakeholders should put their glasses on and look at what others are saying and doing in relation to strata insurance arrangements.

You can read the full article here.

And, you can find out more about NIBA in our Daily Post Who’s Who at National Insurance Brokers Association.

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