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[JC]

As a relative newcomer to Strata life I have just been exposed to the details of our insurance policy.  Our building of around 50 lots is paying a insurance premium consisting of the following components where the insurance premium itself is $1:

Insurance premium (including levies, stamp duties, etc) of $1
Strata manager – $0.16
Insurance Broker – $0.38

So the commissions are 54% of the actual insurance premium (incl levies etc) component, and it appears their percentages are calculated on the duties and levies as well as the actual insurance premium (the latter in our case is just 84 cents) 

Is this normal?

I understand the strata manager looks after claims etc and these costs are covered by their commission.  But the broker ‘service’ appears to include providing 4-5 options for the EC to choose between, and that’s about it.  In fact our broker has the following caveat:

In this instance we only provide a “general advice” service. This means that whilst we may generally recommend the products we distribute, we do not consider whether the product is appropriate for your own personal objectives, financial situation and needs in making the recommendation.
You need to consider the appropriateness of any information (in particular any policy documentation and relevant Product Disclosure Statement) or general advice we give you, having regard to your personal situation, before acting on our advice or buying any product.‘

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