Northern Australian Insurance Premiums Taskforce adviser Margaret Shaw is campaigning to stop Queensland body corporate managers receiving commissions from insurers.

Ms Shaw has made a submission to the Queensland Government asking it to ban the practice, saying some body corporate managers receive commissions as high as 20%.

Ms Shaw told insuranceNEWS.com.au the managers are not qualified to act as insurance brokers, and the commissions they receive give them no incentive to shop around on behalf of their unit-owners.

“If they get commissions, firstly, I don’t think they have the expertise to advise the body corporate,” she said. “Secondly, will they get quotes from other insurers?

“I think it’s a conflict of interest.”

Ms Shaw’s submission is part of the State Government’s investigation into the Queensland Body Corporate and Community Management Act 1997.

National Insurance Brokers Association CEO Dallas Booth told insuranceNEWS.com.au he also believes insurance brokers should be involved in cover for body corporate cover.

“Body corporates can and often do have difficult and challenging risks,” he said.

“Even professional people are not aware of the basic questions to ask about body corporate insurance.

“We have made a submission to the Queensland Government saying that it needs to entrench a process of advice.

“Body corporate managers are not generally qualified or licensed to give advice, but insurance brokers are.”