Stratablox was recently advised that The Australian Consumers Insurance Lobby Inc. (ACIL), have identified and reported to both Australian Securities and Investments Commission (ASIC) and the Australian Competition & Consumer Commission (ACCC), 146 examples of what they believe constitutes misconduct involving the unlawful appointment of insurance brokers by strata managers for strata insurance policies.
ACIL are dedicated to safeguarding the interests of consumers and upholding the principles of transparency, choice, integrity, and accountability in relation to strata insurance practices and the insurance industry more broadly. The ACIL allegations point to a systemic pattern of strata managers illicitly benefiting financially by switching insurance policies to brokers who impose higher fees and commissions without authority and/or informed consent of the insured. This practice, ACIL argues, has led to consumer financial losses exceeding $240 million.
ACIL have subsequently requested that ASIC and/or ACCC initiate an investigation into the 146 examples and that they conduct a comprehensive, industry-wide investigation. ACIL maintains the position that such an extensive investigation will reveal systemic instances of unlawful activity by strata managers in the arrangement of insurance.
ACIL has created a video that provides further insight into our representations to ASIC & ACCC, and how these concerning practices are impacting consumers. The video can be seen above.