Liability Insurance :: News
SHARE

Share this news item!

ICA Advocates for Overhaul of Victoria's Strata Legislation

Addressing Governance Challenges to Mitigate Rising Insurance Costs

ICA Advocates for Overhaul of Victoria's Strata Legislation?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The Insurance Council of Australia (ICA) has recently called for significant reforms to Victoria's strata legislation, highlighting concerns that poor governance and deferred maintenance are contributing to increased insurance premiums for the state's strata property owners.
This appeal underscores the pressing need for legislative updates to enhance the management and maintenance of strata-titled properties.

According to the ICA, approximately one in five Victorians resides in strata-titled properties. Many of these residents are facing higher insurance costs or difficulties in securing coverage due to governance issues and delayed maintenance. The ICA's submission to the Expert Panel Review of the Owners Corporations Act 2006 emphasizes that building defects in residential apartments are costing Australians an estimated $1.3 billion annually. Without reform, more buildings could become uninsurable or face unaffordable premiums as a result of structural problems and insufficient risk management.

The ICA's recommendations focus on several key areas:

  • Enhanced Governance: Strengthening the governance within owners corporations by improving transparency and accountability. This includes targeted education for committee members to better manage complex financial and insurance matters.
  • Licensing of Strata Managers: A careful review of proposed licensing schemes for strata managers, ensuring that any new requirements are evidence-based to avoid unnecessary costs or unintended effects.
  • Disclosure of Commissions: Full disclosure of payments to strata managers that could influence insurance product selection, with a thorough assessment of market impacts before considering a ban on commissions.
  • Facilitating Building Renewal: Lowering the threshold for collective sales of strata properties to facilitate the renewal of older buildings, mirroring New South Wales's move to a 75% owner agreement.
  • Enforcement Mechanisms: Introducing stronger enforcement mechanisms, such as public complaints registers, to hold owners corporations accountable for defects.

These proposed reforms aim to address the root causes of rising insurance premiums by improving the overall management and maintenance of strata properties. Effective reforms backed by proper compliance and enforcement are essential to de-risk strata complexes and deliver better outcomes for all stakeholders.

As the number of residents in multi-unit buildings continues to grow, managing the expenses linked to strata properties becomes increasingly significant. The ICA's call for legislative reform is a proactive step towards ensuring that strata living remains a viable and affordable option for Victorians.

Published:Friday, 13th Mar 2026
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

BizCover and Zurich Collaborate to Enhance Professional Indemnity Insurance for Australian SMEs
BizCover and Zurich Collaborate to Enhance Professional Indemnity Insurance for Australian SMEs
13 Mar 2026: Paige Estritori
In a significant development for Australian small and medium-sized enterprises (SMEs), BizCover has announced the addition of Zurich's Professional Indemnity (PI) insurance product to its online platform, effective from 3 March 2026. This collaboration aims to provide SMEs with enhanced access to comprehensive PI coverage, addressing a critical need in the business community. - read more
Markel Unveils Tailored Professional Indemnity Insurance for Australian Market
Markel Unveils Tailored Professional Indemnity Insurance for Australian Market
13 Mar 2026: Paige Estritori
In a significant development for the Australian insurance market, Markel, a US-based specialty insurer, has launched professional indemnity (PI) insurance products tailored specifically for Australian businesses. This strategic move comes in response to a notable reduction in PI insurance capacity over recent years, leaving many professionals seeking reliable coverage options. - read more
Sterling Insurance Enhances PI Offerings with Lloyd's Binder
Sterling Insurance Enhances PI Offerings with Lloyd's Binder
13 Mar 2026: Paige Estritori
Sterling Insurance has successfully secured a new professional indemnity (PI) binding authority with Lloyd's, a move that promises to provide Australian brokers with greater control over product offerings and pricing structures. This development is part of Sterling's ongoing commitment to delivering tailored insurance solutions that meet the specific needs of niche and complex risk sectors. - read more
Insights from CHU's 2025 Strata Market Report
Insights from CHU's 2025 Strata Market Report
13 Mar 2026: Paige Estritori
CHU, Australia's leading strata insurance underwriting agency, has unveiled its 2025 State of the Strata Market report, offering a comprehensive analysis of the current landscape and future outlook for the strata industry. This report is particularly relevant for property owners and investors seeking to navigate the evolving strata insurance environment. - read more


Business Insurance Articles

The Cost of Public Liability Coverage: Is It Worth It?
The Cost of Public Liability Coverage: Is It Worth It?
Public liability insurance is a crucial safety net for both businesses and individuals, providing protection against the financial fallout from claims of injury or damage that your business operations might cause to third parties. This type of insurance is designed to cover legal and compensation costs, safeguarding you from unexpected financial burdens. - read more
The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs
The Importance of a Custom Risk Management Plan: A Guide for Australian Entrepreneurs
In the fast-paced world of entrepreneurship, the only constant is change, and with change comes the inherent realm of the unknown – risk. Australian entrepreneurs, much like their international counterparts, operate in dynamic environments where unpredictability is a staple. However, the unique economic, legal, and environmental aspects of Australia demand a more localized understanding of these risks. Acknowledging this unpredictability is the first step towards mitigating potential threats to one's business venture. - read more
Public Liability Insurance Claims: What to Expect and How to Prepare
Public Liability Insurance Claims: What to Expect and How to Prepare
When it comes to navigating the complex waters of insurance, understanding public liability insurance claims is crucial for businesses and individuals alike. Public liability insurance serves as a safeguard, protecting against the financial repercussions that arise from accidents or injuries that occur on your premises or through your operations. In this introductory section, we will delve into the essence of public liability insurance and underline its significance. - read more
Understanding Product Liability Insurance in Australia: A Business Owner's Guide
Understanding Product Liability Insurance in Australia: A Business Owner's Guide
As a business owner in Australia, navigating the complexities of protecting your company is crucial, with product liability insurance being an essential aspect to consider. This type of insurance is designed to shield businesses from financial losses that may arise if a product they manufacture, supply, or sell causes harm to a consumer or damages property. - read more


Start Here !
Start here!
Cover Amount:
Postcode:

All quotes are provided free and without obligation by a specialist from our national broker referral panel. See our privacy statement for more details.


Knowledgebase
Insurance Policy Excess:
The amount you will have to contribute when you make a claim.