Trowbridge Paper Three: Phase 2, Brokers, Strata Managers, Conflicts & Money

This paper in Phase 2 of John Trowbridge’s study on strata insurance commissions and premiums for The Steadfast Group covers how the intermediaries [brokers and strata managers] get paid and what might be done to change that.

Since John said the arrangements with and involvement of brokers and strata managers made the strata insurance market ‘unorthodox’, ‘convoluted’ and ‘complicated’ and there was ‘opaque or incomplete disclosure’ this paper contains the guts of the issue; namely the conflicts of interest faced by brokers and strata managers.

And, John concludes that what he calls ‘the commission rebate/broker fee system’ [where strata managers and brokers agree to split the commission from the insurer and charge extra fees] should end.

I’ll be writing in more detail and critically about what’s in Trowbridge’s Paper Three soon.

But, in the meantime, you can read all 57 pages of Trowbridge Paper Three 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.