The Strata Community Association NSW (SCA NSW) has announced a phased approach to replace insurance commissions. Starting from 1 January 2026, new standard management contracts issued by SCA NSW members will exclude options to accept commissions on insurance products. This decision marks a milestone in the industry's efforts to promote transparency and accountability.
The move to phase out commissions addresses longstanding concerns about potential conflicts of interest and the lack of clarity in financial arrangements between strata managers and insurance providers. By eliminating these commissions, the industry aims to simplify pricing structures and foster a more straightforward relationship between property owners and managers.
For property owners, this reform is expected to deliver greater transparency and accountability, ensuring that the selection of insurance products is based solely on the best interests of the strata community. For strata managers, the change offers an opportunity to build stronger, trust-based relationships with clients, enhancing the credibility and sustainability of their businesses.
As the industry progresses towards this new standard, it is crucial for all stakeholders to stay informed and engaged. Property owners should actively participate in discussions about management contracts and insurance arrangements, while strata managers must adapt to the evolving landscape by embracing practices that prioritise transparency and client trust.
