Trowbridge Paper One: Strata Insurance Intermediaries & Disclosures

The first of two papers in John Trowbridge’s study on strata insurance commissions and premiums covers disclosure by intermediaries and how the strata insurance works.

Intermediaries in the study are the brokers and strata managers who deal with strata buildings. And, John describes the strata insurance market structure as unorthodox, convoluted, complicated and confusing for 3 key reasons:

• Because some of the insurance commission is paid to the strata manager, and a separate broker fee is charged to remunerate the broker for the broker’s services.

• Because not all of the commission is rebated to the strata manager, the remainder being retained by the broker.

• In many cases there is opaque or incomplete disclosure to the strata building of insurance related transactions.

You can read all 31 pages of Trowbridge Paper One 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.