Trowbridge Paper Four: Phase 3: Pointing the Way Forwards on Strata Insurance [Maybe?]
This detailed paper for Phase 3 of John Trowbridge’s study on strata insurance commissions and premiums for The Steadfast Group covers two areas: improving strata manager and broker disclosures; and; improving strata insurance market capacity over 12 topics as follows.
1. Four market segments: (a) The mainstream market – standard risks in low risk locations; (b) The mainstream market – sub-standard risks in low risk locations; (c) Southern Australia, adverse locations (flood, storm, hail, fire); and; (d) Northern Australia market, all locations.
2. Underwriting consequences for sub-standard risks and adverse locations [defects, repairs, maintenance, past claims, OC risk management, etc].
3. Affordability: what does it mean, how is it measured?
4. Transparent disclosure (Phase 1): (a) Financial templates; and (b) Broker and strata manager responsibilities in arranging insurance.
5. Market capacity as fundamental to a competitive market.
6. Owner responsibility for risk management, maintenance, remediation, owner education, everyone’s dilemma?, whose responsibility?
7. Transactional efficiencies – quotes, platforms, claims etc.
8. Industry statistics.
9. Economics of strata insurance - premium schematics, anatomy of insurer costs.
10. Policy excesses.
11. Intermediary charges [today’s market practices + Phase 2].
12. Government charges,
13. Replacement value cover: whose responsibility?
So, it covers a lot of ground and is a pretty important explanation of what John Trowbridge [at least] and maybe other think should happen.
I’ll be writing in more detail and critically about what’s in Trowbridge’s Paper four soon.
But, in the meantime, you can read all 64 pages of Trowbridge Paper four here.
We’ll also highlight some aspects of it in future GoStrata Daily Posts. So, watch out for them.
And you can find out more about @JohnTrowbridge here.