An exposé by ABC triggered the closer examination of Sydney-based agency Netstrata, spotlighting the steep insurance brokerage fees imposed on property owners. Such revelations drew attention to the industry's standard practices, prompting a call for a systemic overhaul. Reports suggested that Netstrata, through its insurance division, levied charges reaching triple the average rate and received undisclosed benefits from service providers and contractors.
The agency, overseeing a portfolio including over a thousand buildings and some 35,000 units, reportedly accumulated upwards of $21 million in brokerage fees since 2015. Amidst this controversy, Stephen Brell, the agency's Managing Director, stepped down from his position as president of the Strata Community Association NSW.
In response to these events, NSW Fair Trading has teamed up with McGrathNicol, an independent consultancy, to scrutinize Netstrata's operations. Their investigation will unfold the intricacies of the firm's business model, meticulously reviewing internal structures, financial dealings, incentives, fees, and external partnerships. This action signals the government's resolve to ensure a credible strata management landscape.
Emphasizing the importance of trust in strata management, State Strata and Property Services Commissioner John Minns articulated the growing preference for strata living among NSW citizens, stressing the necessity for dependable stewardship of their valued assets. "Strata professionals must serve with integrity," Minns stated, echoing the urgency of nurturing consumer confidence. "NSW Fair Trading's determined response is a testament to our dedication to fostering a reliable and responsible strata sector."
While Netstrata defends the integrity of its procedures, the organization acknowledges the public's appetite for greater transparency. According to a statement, Netstrata is committed to exemplary service delivery and is actively conducting an internal review to enhance the clarity of its disclosure practices, promising to exceed current statutory disclosure standards. "Our commitment to transparency is unwavering; we pledge full cooperation with NSW Fair Trading in disclosing our financial operations," affirmed the agency.
Published:Monday, 6th May 2024
Source: Paige Estritori
Senate Probes Climate's Toll on Insurance Costs and Access 18 May 2024: Paige Estritori The Senate has launched an investigation into the growing climate risks that are affecting insurance premiums, with a focus on affordability and accessibility. - read more |
Adviser Shortage and Policy Shifts Impact Life/Risk Market 17 May 2024: Paige Estritori The decline of life/risk advisers paired with the Australian Prudential Regulation Authority's (APRA's) intervention in the Individual Disability Income (IDII) insurance sector imposes fresh challenges on the market, hinting at recovery only intermittently. - read more |
Insurers Under Fire: Melbourne Floods Reveal Gaps and Mismatches 16 May 2024: Paige Estritori Residents from western Melbourne have voiced sharp disapproval of insurance companies at the recent federal inquiry hearings held in Maribyrnong, citing significant grievances post the 2022 floods. - read more |
Allianz Streamlines Flood Insurance with New Update 16 May 2024: Paige Estritori Allianz has taken a considerable step forward in modifying its flood insurance approach for homeowners. Drawing conclusions from the flood incidents of 2022, changes are set to be implemented to provide clearer and more inclusive coverage. As a measure to simplify their insurance products, Allianz will integrate flood insurance as a non-negotiable component of home building, contents, and landlord policies for new clients starting from the latter part of this year. - read more |
Australian Tourist Secures Compensation for Air Ambulance From Bangkok 11 May 2024: Paige Estritori A recent decision by a dispute resolution body in favor of a 74-year-old Australian traveler has emphasized the importance of clear communication and precise terms and conditions in insurance policies. This comes after the individual engaged in a tug-of-war with an insurance company over a $195,223 claim to cover emergency medical transportation from Thailand. - read more |
The Role of Liability Insurance in Managing Contractor and Supplier Risks Engaging with contractors and suppliers is an integral facet of many business operations, fostering growth and expansion. However, with this collaboration comes inherent risks that can impact a business financially and legally, should any unexpected incidents arise. It is here that liability insurance steps in as a cornerstone of risk management, safeguarding businesses from potential pitfalls associated with these partnerships. - read more
|
How to Choose the Right Public Liability Insurance Policy for Your Business When it comes to running a business, safeguarding your financial well-being against unforeseen events is crucial. Public Liability Insurance (PLI) is designed to protect your business from the financial risks associated with claims of property damage, personal injury, or death caused to third parties due to business activities. Understanding this shield of security is the first line of defense in a world where accidents and mishaps are not just possible but often probable. - read more
|
A Guide to Public Liability Insurance for Construction Businesses When embarking on a construction project, the potential for unexpected incidents and the associated liabilities cannot be ignored. Navigating through the intricate world of insurance might seem daunting, but understanding public liability insurance can save your business from financial peril. In the ever-evolving landscape of Australian construction, its significance cannot be overstated. - read more
|
The Business Owner's Guide to Calculating Adequate Public Liability Coverage For any business owner, navigating the waters of legal and financial protection can be daunting. Public liability insurance is a lifeboat in this respect; by understanding its basics, businesses can better shield themselves against the unpredictable tides of liability claims. As a starting point, public liability insurance is designed to protect businesses in the event that a third party suffers an injury or property damage due to the business's operations. - read more
|
Understanding Public Liability Insurance: A Must-Have for Aussie Businesses For any Australian business, the unforeseeable mishaps that can occur daily pose potential risks not only to operational continuity but also to financial stability. At the core of a strategic risk management plan lies the essential protective layer of public liability insurance, a shield safeguarding businesses from the legal and financial repercussions of accidents and injuries that may happen on their premises, or as a result of their operations. - read more
|
A Beginner's Guide to Public Liability Insurance: Protecting Your Business Imagine you own a cozy café where people flock for their morning coffee and a slice of solace. Now picture a customer slipping on a wet floor and sustaining an injury. Incidents like this, as unfortunate as they are, can occur in any business setting and often result in legal claims that can be financially draining. This is where public liability insurance becomes a cornerstone for safeguarding your business. - read more
|
How to Choose the Right Public Liability Insurance Policy for Your Business When it comes to running a business, safeguarding your financial well-being against unforeseen events is crucial. Public Liability Insurance (PLI) is designed to protect your business from the financial risks associated with claims of property damage, personal injury, or death caused to third parties due to business activities. Understanding this shield of security is the first line of defense in a world where accidents and mishaps are not just possible but often probable. - read more
|
A Guide to Public Liability Insurance for Construction Businesses When embarking on a construction project, the potential for unexpected incidents and the associated liabilities cannot be ignored. Navigating through the intricate world of insurance might seem daunting, but understanding public liability insurance can save your business from financial peril. In the ever-evolving landscape of Australian construction, its significance cannot be overstated. - read more
|
Understanding Public Liability Insurance: A Must-Have for Aussie Businesses For any Australian business, the unforeseeable mishaps that can occur daily pose potential risks not only to operational continuity but also to financial stability. At the core of a strategic risk management plan lies the essential protective layer of public liability insurance, a shield safeguarding businesses from the legal and financial repercussions of accidents and injuries that may happen on their premises, or as a result of their operations. - read more
|
The Role of Liability Insurance in Managing Contractor and Supplier Risks Engaging with contractors and suppliers is an integral facet of many business operations, fostering growth and expansion. However, with this collaboration comes inherent risks that can impact a business financially and legally, should any unexpected incidents arise. It is here that liability insurance steps in as a cornerstone of risk management, safeguarding businesses from potential pitfalls associated with these partnerships. - read more
|