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As a strata committee member, we recently went through the strata insurance renewal process.
The proposed quote comes back with 50% and above increase to premium, primarily due to the increase in sum assured.
As a committee, we felt that it is not justified to have building sum assured increase by more than 50% over one year and went back for a lower sum assured quote (20% increase).
We got knocked back from the broker saying that insurer determine the building valuation hence does not accept quoting for a 20% increase in building sum assured. Full stop!
It appears that there is ‘moral hazard’ from broker and/or insurer to over-inflate the total sum assured for a higher premium. As OC, we got no choice but to go with unreasonably large increase in sum assure.
Is there anything we can do as a committee?
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