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ICA Advocates for Strata Law Reforms to Mitigate Rising Insurance Costs in Victoria

Poor Governance Linked to Increased Premiums for Strata Residents

ICA Advocates for Strata Law Reforms to Mitigate Rising Insurance Costs in Victoria?w=400

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The Insurance Council of Australia (ICA) has called for significant reforms to Victoria's strata legislation, citing a direct link between inadequate governance and escalating insurance premiums for residents.
With approximately one in five Victorians living in strata-titled properties, the need for effective management and oversight has become increasingly critical.

In its submission to the Expert Panel Review of the Owners Corporations Act 2006, the ICA highlighted that building defects cost Australians an estimated $1.3 billion annually. Poor governance and deferred maintenance are transforming insurable buildings into high-risk liabilities, leading to higher premiums or, in some cases, rendering properties uninsurable.

The ICA's recommendations include enhancing transparency and accountability within owners corporations, providing better education resources for committee members, and ensuring full disclosure of any payments to strata managers that could influence insurance product selection. These measures aim to improve risk management and financial oversight within strata communities.

By implementing these reforms, the ICA believes that Victoria can address the root causes of rising insurance costs and ensure that strata residents have access to affordable and comprehensive coverage.

Published:Tuesday, 6th Jan 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

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Knowledgebase
Proximate Cause:
The primary cause of loss in an insurance claim, which sets in motion a chain of events leading to the damage or injury.