Flex Insurance, a wholly owned subsidiary of CHU Underwriting Agencies, has entered into a major underwriting binder agreement with a Lloyd’s syndicate, marking a notable development in its five-year history within the Australian residential strata insurance market.
This new capacity is expected to enhance the company’s growth and operational capabilities.
Effective Sept. 1, certain underwriters at Lloyd’s will underwrite Flex Insurance policies with sums insured up to $25 million. Policies with sums insured exceeding $25 million will continue to be underwritten by QBE.
CHU Underwriting Agencies CEO Kimberley Jonsson said the deal further solidifies Flex Insurance’s market position.
“This underwriting capacity further strengthens Flex Insurance’s position as a dynamic player in the insurance industry. It also empowers our customers with greater choice and flexibility when it comes to selecting a strata insurance policy,” she said.
Frank Scamarcia, general manager of Flex Insurance, expressed enthusiasm about the new phase.
“We are thrilled to welcome Lloyd’s as a new capital provider alongside QBE. This positions us for sustained growth and innovation. Flex Insurance will continue to provide brokers, strata managers, and strata owners with an innovative product that meets their needs and is adaptable to the evolving market,” he said.
Lloyd’s, a specialist insurance and reinsurance market with expertise dating back to 1688, will underwrite Flex Insurance’s small to medium-sized strata policies. This partnership aims to support Flex Insurance’s business expansion and the development of new products for the Australian strata market.
In other news from the Australian strata insurance market, the Australian Consumers Insurance Lobby (ACIL) published a report exposing gaps in the strata insurance sector, following its Nationwide Survey on Questionable Practices in Strata Insurance, which began on March 20.
The report consolidated extensive feedback, highlighting significant issues and outlining ACIL’s strategies for advocacy and reform within the sector.
It highlighted confusion among respondents about the regulatory body responsible for overseeing the sector, indicating a need for clearer governance and regulatory frameworks. Additionally, it pointed to systemic ethical issues and dissatisfaction with the Strata Community Association (SCA), with calls for significant reforms or restructuring.
The report suggested broader concerns within the strata management industry, calling for an extensive review to address a wider range of consumer issues.
ACIL stressed the urgent need for a government inquiry to clarify contentious practices and assist strata managers in operating more effectively while helping consumers make informed choices.
