The National Insurance Brokers Association has welcomed the NSW government’s bid to build consumer confidence in the strata sector, including laws and penalties introduced this month.

Ministers are still considering a ban on strata commissions and have warned of fines of up to $110,000 for breaches of new transparency laws requiring detailed breakdowns of insurance quotes, including commissions and broker fees, plus disclosure of any connections with suppliers and developers.

NIBA says its VP Nick Cook and CEO Richard Klipin have been engaging with the state government to ensure brokers “remain well positioned as trusted partners for strata communities”.

“With the number of Australians living in strata properties predicted to increase to 50% by 2040, it is vital that ... consumers have access to affordable advice,” NIBA said.

“Insurance brokers provide expert guidance at claim time and arrange insurance to protect residents from a variety of risks in the strata sector. By navigating increasingly complex insurance markets and advocating on behalf of their clients, brokers help enhance transparency and safeguard strata communities.”

Under changes made so far, strata managers can no longer receive a commission if an owners’ corporation arranges insurance independently. The government says the new laws improve oversight and accountability, and ensure strata managers’ practices are transparent.

NSW Fair Trading, which enforces the laws, has also met with brokers and other stakeholders to explore how a commission ban could be implemented.

Parliament passed the strengthened transparency and oversight laws last September after disclosure failings and conflicts of interest were highlighted. An ABC report had focused on excessive fees charged by strata management business Netstrata, which has since been under investigation.

NSW has more than 87,000 strata schemes housing more than 1.2 million people.