A collective demand for inquiry has emerged from several consumer and property advocacy groups in the wake of troubling disclosures on ABC's 7:30 Report.
The Australian Consumers Insurance Lobby (ACIL), Owners Corporation Network of Australia (OCN), and Unit Owners Association Queensland (UOAQ) are urging the Australian Securities and Investments Commission (ASIC), the Australian Competition and Consumer Commission (ACCC), and New South Wales' Strata & Property Services Commissioner to initiate a comprehensive investigation into NetStrata and its affiliates' business methodologies.
The ABC program brought to public attention accusations involving NetStrata, specifically pointing to alleged excessive charging and potential conflicts of interest linked to Strata Insurance Services, a firm reportedly associated with a NetStrata director.
These claims have sparked widespread concern over the practices' compliance with industry standards of transparency and legality.
Asserting the critical importance of transparency, equity, and legal adherence in the insurance and strata sectors, the groups have formally sought a probe into NetStrata's operations. They are particularly interested in:
In an expanded effort, ACIL forwarded 146 instances of alleged wrongdoing related to strata insurance policies to ASIC and ACCC, advocating for an extensive review of the sector.
ACIL chairperson Tyrone Shandiman pointed out the critical nature of the allegations against NetStrata.
“Our demand for a separate inquiry into NetStrata's operations, distinct from the ongoing reviews already initiated, reflects the critical nature of the allegations and the necessity for prompt and decisive regulatory action,” he said. “We are reassured by ASIC and ACCC's engagement with our organisation and the evidence we've presented and are hopeful of the commencement of a formal investigation.”
OCN executive director Karen Stiles voiced her concerns following the ABC report.
“OCN is deeply troubled by the findings reported on ABC's 7:30 Report. The revelations underscore a pressing need for enhanced powers and resources for the Strata & Property Services Commissioner to protect consumers effectively,” she said. “We are committed to addressing this issue directly with Minister Anoulack Chanthivong and the Strata & Property Services Commissioner.
“Given the limited number of just 16 inspectors to manage the extensive NSW property portfolio, OCN has noted instances of investigations into serious allegations against a strata manager that have stretched beyond two years without reaching a conclusion. We see this as an invaluable moment to advocate for the necessary changes that will ensure the safety and rights of strata residents.”
ACIL continues to seek feedback on strata insurance practices to identify and address concerns within the sector.
