The number of strata insurance offerings declined further after another five products were taken off the market last year, leaving consumers with less choice, according to StrataRatings.

The independent strata analyst says the reduced offerings mean the market has declined by 25% from two years ago.

“As we see a quarter of the market remove their policies for sale in just two years, it is troubling to consider what this means for consumers in terms of competitiveness,” MD Simon Plummer said.

“On the positive side, policies that are withdrawn from the market tend to have poor or unstable insurers.

“This means that if decision-making is more determined by price than anything else, there may be a lower chance of losing out come claim time.”

He says market leaders in the strata space have strong and secure underwriters. And in addition to this strong base, they design products that address client needs and distribute these fairly.

Mr Plummer made the observations as StrataRatings announced its annual ranking of commercial and residential products.

CHU Strata Insurance, Strata Community Insurance and Strata Unit Underwriters topped the residential and commercial product categories, receiving platinum status.

Gold status in the residential category went to Flex Insurance, QUS Strata Insurance, Axis

Underwriting, Chubb Insurance, Expert Strata Insurance and Longitude Insurance.

In the commercial category, gold status was awarded to QUS Strata Insurance, Chubb Insurance, Expert Strata Insurance and Longitude Insurance.

Click here for more on the ratings.