Life Insurance Online :: 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
ICA Advocates for Overhaul of Victoria's Strata Legislation
ICA Advocates for Overhaul of Victoria's Strata Legislation
13 Mar 2026: Paige Estritori
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. - read more


Life Insurance Articles

Life Insurance for Entrepreneurs: Protecting Your Business and Family
Life Insurance for Entrepreneurs: Protecting Your Business and Family
Life insurance is a financial product designed to provide a safety net for your loved ones and business in the event of your passing. At its core, life insurance aims to deliver financial protection by paying out a lump sum or ongoing payments to a designated beneficiary upon the insured's death. - read more
How Much Life Insurance Do You Truly Need? Assessing Your Personal Coverage
How Much Life Insurance Do You Truly Need? Assessing Your Personal Coverage
There's often confusion surrounding the amount of life insurance one truly needs. Common misconceptions cloud our judgment, leading some to undervalue their coverage, while others may overinsure, unnecessarily straining their financial resources. It is a delicate balance to strike, and understanding the nuances of life insurance is pivotal to making informed decisions. - read more
How Life Insurance and Estate Planning Work Together for Your Benefit
How Life Insurance and Estate Planning Work Together for Your Benefit
For many Australian families, the concept of estate planning might evoke imagery of vast wealth and complex legal documents, reserved for the very affluent. However, this misconception overshadows the universal importance of having an estate plan, which at its core, is about ensuring your loved ones are cared for and your wishes are honored upon your passing—even if you don't consider yourself wealthy. - read more
Why Life Insurance Should Be a Priority for Every Married Couple
Why Life Insurance Should Be a Priority for Every Married Couple
When it comes to financial planning, life insurance often takes a backseat. Many married couples in Australia overlook its importance, thinking that it's not immediately necessary or that they can simply put it off for later. However, life insurance should be regarded as a cornerstone of a solid financial strategy. - read more
How Much Life Insurance Does Your Family Actually Need?
How Much Life Insurance Does Your Family Actually Need?
Financial security for families is an essential consideration in any household. Life can be unpredictable, and ensuring that your loved ones are protected from financial hardship in your absence is a critical part of financial planning. - read more


Your Life Insurance Quote Starts Here

Life 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
Insurable Interest:
A financial or other kind of interest in the insured item or person, necessary for a valid insurance contract.