Forum

Insurance Business forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Notify me of new replies via email
Insurance Business | 13 Jan 2014, 09:00 AM Agree 0
Ministers are said to have until the end of this week to read a draft version of the bill.
  • Keith L | 13 Jan 2014, 10:10 AM Agree 0
    As an insurance intermediary who has strata title properties covered, I hope the body drafting the legislation has some knowledge of the insurance industry. In most states the body corporate is required to insure the property but many unit holders seem to be able to insure their own unit and are sometimes completely oblivious to the fact that their structure is covered by the strata title policy. I believe this is possible because not all companies provide strata title cover and their operators fail to establish at the time of quoting that the property is under strata title.
    While I have no problem with disclosure of conflicts of interest, to inflict the need for body corporates to obtain 3 quotes every year for every service, including insurance, is somewhat an over-kill in consumer protection and could well lead to unnecessary unit holder confusion.

  • Paul Burstow | 13 Jan 2014, 12:56 PM Agree 0
    Keith

    That's why we have brokers to explain to clients the difference between Strata Insurance and Contents Insurance . The agents /building maintenance companies should earn their remuneration like brokers and explain the difference of contracts to their clients and alert Body Corporate Boards to inform their unit holders of the difference.
    True brokers obtain quotes from ALL insurers in this market. I'm sure if you were a unit holder paying the premiums you would not think this was overkill. You must think all contracts and premiums are the same. That why agents are extensions of insurance companies WE ARE NOT
  • Keith L | 13 Jan 2014, 04:02 PM Agree 0
    Thank you for your enlightenment Paul but I am aware that not all premiums and contracts are the same and the difference in operation of intermediaries and brokers is not a subject appropriate to debate here.
    A significant percentage of my strata title covers are for small titles of 2 to 10 members most of which have no formal body corporate. Instead one of the members assumes responsibility for placing the insurance and collecting each members' share of premium. In most of these situations my experience is that the person assuming the responsibility does so reluctantly and would not have the administrative skills necessary to obtain 3 formal quotes for every service. It is also my experience that most of the other members are not particularly interested provided they do not have to get involved in the process. It is another case - much like the over regulation of the financial services industry - where uneducated and inexperienced regulators are causing unnecessary expense and inconvenience by imposing ill-informed, idealistic and often unnecessary rules and regulations. When it is too late, the unintended consequences come to light and the people the legislation was supposed to help are in fact hindered.
  • Paul Burstow | 14 Jan 2014, 12:11 PM Agree 0
    Keith
    I think we agree . All parties big and small need a Broker.
    Best regards
    Paul
Post a reply