#18606
Whale
Flatchatter

    I can understand the commission relationship between strata managers and insurers, but as I’ve said before in other posts it can’t be justified in my opinion.

    I’ve heard the stories about the “better” relationship that strata managers have with strata insurers, how the strata managers understand the “system”, and how all that benefits the Owners Corporation (O/C); how does it exactly?

    Answer: it doesn’t. If anything, it creates the potential for strata managers to simply steer O/Cs in the direction of the insurer that pays the highest commission. Many years ago when our O/C engaged a strata manager (who was not one of the small ones who would go to the wall if those commission/s were removed) and we had a claim, they didn’t know any more than I did about the “system”, and in fact it was me who had to continually contact our insurers to hurry things along so that we could commence quite critical repairs.

    In my opinion it’s completely unjustifiable for those big strata insurers to load-up their premium by 20%+ for self managed Plans like ours, and if it’s the last thing that I do I’ll be finding a broker or an insurer that will at least share that commission that they would otherwise pay to a strata manager with us.

    That is fair!!