ICA Advocates for Reforms in Victoria's Strata Legislation

In a submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA emphasized that building defects are costing Australians an estimated $1.3 billion annually. Many strata buildings are facing challenges in securing affordable insurance due to structural issues and inadequate risk management.

The ICA's recommendations include lowering the unanimous agreement threshold for strata complex sales to enable faster renewal of aging, uneconomic buildings that pose insurance risks. Additionally, the council advocates for full disclosure of all payments to strata managers that may influence insurance product selection, aiming to enhance transparency and consumer protection.

Furthermore, the ICA suggests conducting thorough market impact assessments before banning commissions to avoid unintended premium increases. These reforms are intended to improve the management and maintenance of strata complexes, ultimately leading to more stable and affordable insurance premiums for residents.

The ICA's call for reform underscores the need for a coordinated approach to address the challenges facing the strata insurance sector. By implementing these recommendations, the industry aims to enhance the resilience and sustainability of strata communities across Victoria.