Bradley Heath, Managing Director of Sure Insurance, highlighted the affordability crisis exacerbated by some insurers exiting the residential strata market. This exodus has reduced competition and placed upward pressure on premium prices, leaving many body corporates struggling to insure their complexes adequately. In some cases, property owners were compelled to seek coverage from offshore providers, which may not always offer the same level of service or understanding of local conditions.
By increasing the coverage limit to $20 million, Sure Insurance aims to offer more competitive premium options and improve access to insurance for higher-valued apartment complexes. This move is expected to benefit over 500 strata complexes in the $5-$20 million range within the target region. The policies, effective from April 1, are underwritten by Axa’s XL Insurance, ensuring robust backing and reliability.
In addition to expanding coverage, Sure Insurance plans to reward well-managed body corporates that have taken steps to enhance the resilience of their complexes. Measures such as structural reinforcements and compliance with safety standards can lead to reduced premiums, incentivizing proactive risk management among property owners.
This development is part of a broader effort to address rising insurance costs in high-risk areas, where premiums can be significantly higher than in lower-risk regions. The Australian Competition and Consumer Commission’s Northern Australia Insurance Inquiry previously found that competition for strata properties with higher exposure to cyclone and water damage was limited, contributing to affordability issues.
For strata property owners in Northern and Regional Queensland, this expansion offers a valuable opportunity to secure comprehensive coverage at more competitive rates. It also underscores the importance of proactive building management and resilience measures, which can lead to further premium reductions and enhanced protection against potential risks.
