Calls for accounts of strata insurance problems have triggered a strong response, with unit owners and industry participants outlining their experiences to the Australian Consumers Insurance Lobby and the ABC.

The ABC says it received “more than 1000 separate reports about suspect activities by a wide sweep of strata management companies” since publishing a report two weeks ago on alleged practices at Sydney-based Netstrata that led to inflated broking fees. 

Most of the complaints appear to be credible and well-documented and several have been lodged by people with “intimate knowledge” of how the industry operates, the broadcaster says. 

A case is cited in which owners found in one year that their broking fee cost more than the actual policy, with the fee charged at 115% of the base premium. 

The ABC has looked at issues in strata insurance and “undisclosed kickbacks” for managers from companies that provide building and contractor services. 

The Australian Consumers Insurance Lobby, which has been calling for strata insurance reform, has sought action from the Australian Competition and Consumer Commission and the Australian Securities and Investments Commission. 

It also launched an online survey last month seeking further feedback.

Chairman Tyrone Shandiman says 80 to 90 submissions have been received and information is still being analysed. 

“We are particularly heartened by the participation of individuals within the industry who have come forward to share their experiences,” he told insuranceNEWS.com.au. “Additionally, this survey has enabled us to identify problematic practices and bad actors.” 

The group plans further action, he says. 

The Strata Community Association (SCA) said before Easter that it had listened to concerns and was committed to raising standards and improving practices among members. 

The group’s response includes fast-tracking the introduction of a best practice insurance disclosure guide to June 30, appointing an independent chair to a complaints and conduct panel, and producing a best practice guideline to address conflicts of interest more widely. 

Netstrata MD Stephen Brell resigned as SCA NSW president following the ABC report and has invited NSW Fair Trading to conduct a review of his business’ practices. 

SCA NSW has said it will commission an investigation by an independent firm, and will keep its membership updated with progress and outcomes.