Question: Is a self-managed strata entitled to a rebate from the insurance broker’s commission?
Answer: Your scheme can negotiate the remuneration structure with the broker.
You are entitled to negotiate with insurance brokers, especially if the strata scheme directly engages the broker. If the insurance broker pays a commission to strata managers and your self managed strata scheme engages them directly, your scheme can negotiate the remuneration structure with the broker. As is the case in any profession, you can negotiate fees.
This post appears in the May 2025 edition of The NSW Strata Magazine.
Tyrone Shandiman
Strata Insurance Solutions
E: tshandiman@iaa.net.au
P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.
Is a self managed strata entitled to a rebate from the insurance brokers commission from the insurance provider?
We have responded to your comment in the article above.
Question: Should strata managers have a letter of appointment signed by a committee member before a broker is appointed.
Strata Insurers do not have a requirement that the Letter of Appointment is signed by a committee member. They accept Letters of Appointment signed by strata managers.
This is 1/2 correct, the strata manager can sign the letter of appointment, with the use of the “Seal” the insurance policy is s legal contract, as with all contracts it should be signed under seal.