This article about the best strata insurance 2019 has been supplied by Simon Plummer, StrataRatings.
Since the 2018 StrataRatings awards many strata insurers have taken it upon themselves to update their policies which is fantastic news for consumers.
In the Residential category, 32% of policies were updated and in the Commercial category, a whopping 38% of insurers went ahead with upgrades.
Our research indicates that this is the highest proportion of policies upgraded in a single year, likely due to the increased scrutiny of the content of these policies (and possibly due to the inaugural StrataRatings awards!).
In previous decades it wouldn’t be uncommon for policies to remain the same for 5+ years so it seems insurers are paying close attention to the evolving needs of Owners Corporations and the competing products available on the market.
Our rating methodology remained the same as last year and essentially considered the following:
- Is the policy an Insured Events policy or a Broadform Accidental Loss/Damage policy?
- Who is the insurer?
- Is the product freely available to purchase?
- How comprehensive is the wording?
Full detail of this methodology can he found here.
What Ratings Changed?
It may be surprising to learn that no changes to the 2018 Ratings were made.
‘But surely all these upgrades made some difference?!’ you may question.
Yes, the upgraded policies will generally be more comprehensive than the previous versions however we saw no significant changes to policy structure, insurer or distribution method which would lead to a change in Rating.
And it is these first three considerations in our methodology that seem to separate the great from good.
A policy that forces intermediary risk or uses a less than desirable underwriter, no matter how inclusive the wording is, will never achieve a top award.
An analogous example is building a bridge with poor foundations. Perhaps the bridge has some great features; it has eight lanes, smooth tarmac and world-class onramps. For those using it in non-peak periods, great. But for those who happen to use it in dense traffic when it is under maximum load, there is a good chance of failure.
And this is what a great insurance policy is about – performance in times of maximum stress.
So, there you have it – the StrataRatings awards for 2019!
Come and check out where your policy sits: Click here to see the ratings for Best Strata Insurance 2019!.
StrataRatings is Australia’s first and most respected strata insurance evaluator. As a pioneer in the strata insurance industry, StrataRatings was established to close the information divide between insurers and strata schemes and to cut through the complexities of Australia’s strata insurance industry.
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This post appears in Strata News #225.
This article has been republished with permission from the author and first appeared on the StrataRatings Website.