ACIL calls for an industry-wide ban on commissions to strata managers

Lobby group shares some of the key concerns remaining unaddressed

ACIL calls for an industry-wide ban on commissions to strata managers

Insurance News

By Jonalyn Cueto

A lobby group that historically resisted a complete ban is now calling for an industry-wide ban on commissions and financial benefits to strata managers in the provision of strata insurance.

In a news release, the Australian Consumers Insurance Lobby Inc (ACIL) said this follows consultations with key strata management body the Strata Community Association (SCA) that led ACIL to conclude the industry is incapable of effectively self-regulating commissions in strata. It said the move is supported by a study commissioned by Steadfast with regards to the “John Trowbridge Independent Review of Strata Insurance Practices”. The findings exposed significant concerns on strata manager remuneration, ACIL said. It also said the move is also aligned with the recommendations from the Australian Competition and Consumer Commission (ACCC).

ACIL said the change in their stance from opting to explore the option of self-regulation within the industry was due to recent discussions with SCA not yielding desired outcomes in addressing key consumer concerns.

“ACIL’s advocacy efforts were aimed at enhancing transparency, choice, integrity, and accountability within the strata management sector. Although there was mutual recognition of the need to address ‘bad actors’, collaborative attempts with SCA have been insufficient,” the lobby group wrote.

Key concerns remaining unaddressed

According to ACIL, the SCA’s consumer guide, which was created to address the lobby group’s calls for a comprehensive guide to detail industry best practices for consumer empowerment, “fell short” of addressing critical consumer issues. Among the key concerns “omitted” include:

  • Committee oversight on appointments: Advocating for transparency in notifying committees on new broker appointments by strata managers
  • Transparency in remuneration changes: Highlighting the need for clear communication about remuneration changes during the appointment process
  • Timely information facilitation: Addressing unreasonable delays by strata managers in providing essential information for insurance tendering
  • Clear and accurate role information: Ensuring strata managers provide truthful and clear information about their role in the insurance process and to present alternative proposals honestly
  • Consumer guide omissions: Concern over the lack of advocacy for the distribution of the consumer guide at crucial times

Other concerns include issues with contract conditions in SCA-standard agreements as well as best practices adopted across Australia.

ACIL emphasised “the need for more robust oversight mechanisms and higher standards to ensure consumer protection”. As a result, the lobby group is now actively campaigning for a ban on commissions to strata managers, involving media and political advocacy, and referring to specific issues to regulatory bodies.

ACIL explains in a video their stance on banning strata manager commissions. To view the video, visit

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