Wednesday, July 18, 2012

Bad managers driving insurers out

Port Douglas NewsPort has a post related to strata insurance and body corporate management:
The Queensland Body Corporate Association (QBCA) believes bad Body Corporate managers are driving Insurers out of the market.

The QBCA have asked for investigations by ASIC, ACCC and the Queensland Office of Fair Trading into a test case where a high profile Body Corporate Management firm has altered an insurance quote to ensure their commission paying “preferred supplier” quote was the lowest for insurance.

Investigations will be centred on anti-competitive and insider-trading legislation while also looking at breaches of the Code of Conduct of a Body Corporate Manager.
The body corporate management business is in some respects as much an insurance business. With currently elevated premiums there would likely be buildings paying as much in insurance commissions as the management fee. The recent response to the parliamentary inquiry rejected a recommendation for a referral to the ACCC.

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