Netstrata Proceedings Put Strata Insurance Disclosure Under Fresh Scrutiny
What owners corporations should watch as regulatory pressure increases
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NSW Fair Trading’s criminal proceedings against Netstrata have put strata insurance governance back in the spotlight, particularly for owners corporations trying to understand whether their premiums, commissions and service arrangements are being handled transparently.
The action, reported on 9 July 2026, alleges the strata manager failed to adequately disclose or manage conflicts of interest and received undisclosed financial benefits.
Netstrata has indicated the charges will be defended, so the matter remains before the courts rather than resolved.
The proceedings name Netstrata director and licensee in charge Stephen Brell, who has stepped aside as managing director while the legal process continues. The matter is listed for the NSW Supreme Court on 27 and 28 July 2026. Netstrata has also pointed to reform work already undertaken since investigations began, including a move to a zero-commission approach. For strata owners, the key issue is not only what happens in this case, but what it signals about the level of documentation and accountability now expected across the sector.
Insurance is central to that discussion because a strata insurance policy is usually one of an owners corporation’s largest recurring expenses. Premiums can be affected by claims history, defects, building condition, replacement value, insurer appetite, commission structures and the quality of information given to the market. If owners cannot clearly see who is being paid, what services are being performed and how conflicts are managed, it becomes difficult to assess whether the scheme is receiving suitable cover at a fair cost.
This story extends the broader national debate over strata commissions, broker arrangements and disclosure standards. It follows recent scrutiny of broking code compliance and state-level reforms aimed at lifting transparency. For committees, the lesson is practical: governance should not stop once a renewal notice arrives. Ask for a full breakdown of premium, statutory charges, broker remuneration, manager benefits and any related-party service arrangements. If the answers are unclear, seek written clarification before renewal decisions are made.
Owners corporations should also keep a clear audit trail showing how insurance options were considered. That may include minutes recording competing terms, exclusions, excesses, valuations, defect disclosures and reasons for selecting a provider. Where a building has complex defects, high claims activity or rising levies, engaging professional assistance can help committees test whether the market submission is complete and whether alternative structures may be available.
The bigger message is that strata insurance transparency is becoming a boardroom-level issue for committees, not a back-office formality. Owners who stay informed and ask disciplined questions are better placed to protect both their building and their levies.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
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