Strata Insurance Breaches Put Transparency Back in the Spotlight

The matter gained further attention when the National Insurance Brokers Association responded on 2 July 2026, acknowledging that governance of representative arrangements needs to be tighter and that conflicts should be actively managed, not merely disclosed. The committee issued nine formal breach determinations and referred two brokers to ASIC, making this more than a technical compliance story.

For real estate agencies, especially those involved in property management, owners corporation relationships or referral pathways, the message is clear: transparency around insurance roles, fees and responsibilities matters. Even where an agency is not itself arranging strata insurance, clients may still associate the agency with broader property-related advice. That can create reputational risk if responsibilities are unclear or if a client later believes they were not properly informed.

This is also a useful extension of the broader code and claims-handling issues already being watched across the insurance sector. The focus is shifting from whether a disclosure was made to whether the client could reasonably understand the arrangement, the incentives involved and who was acting for whom. That distinction is important for agency principals, because many professional indemnity disputes begin with confusion about advice, documentation or expectations.

Practical steps for agency owners include reviewing referral relationships, checking how insurance-related introductions are described to landlords or owners corporations, and ensuring staff do not imply expertise beyond their role. If your agency receives any fee, benefit or commercial advantage connected to an insurance referral, that should be documented and communicated in plain language.

Agencies should also revisit their own insurance for real estate agents, particularly professional indemnity, public liability and management liability cover. These policies are not a substitute for strong governance, but they can form part of a more resilient risk framework when documentation, training and client communication are also in order.

The wider lesson is simple: insurance arrangements linked to property decisions are under increasing scrutiny. Real estate businesses that want to protect trust should treat compliance, disclosure and conflict management as client service issues, not just legal obligations. Where arrangements are complex, seeking guidance from experienced brokers or advisers can help agency leaders identify gaps before they become complaints.