QBCA Calls for Co-Operative Insurance Plan
The Queensland Body Corporate Association is seeking interest from body corporate committees throughout the state to gauge whether there is sufficient backing for a co-operative insurance scheme.
QBCA CEO Errol Anderson said, “Many owners are hurting financially with insurance premiums hitting all time highs and being justified by insurers by severe weather events. We need to look at how we can reduce insurance premiums and one of the obvious steps is to take out the layers of middle-men who are clicking the premium ticket.”
“There are around 13,800 bodies corporate in Queensland with a total of over 350,000 individual lots. A conservative estimate of premiums being paid is in the region of $500 per lot, leading us to a market figure of around $1.75 billion in premiums being paid annually.”
Mr Anderson said schemes run by RACQ and NRMA are very successful models that could be considered for the body corporate sector.
The thorn in the side of bodies corporate are the body corporate management firms who prosper more the higher premiums go. Some are pocketing up to 20% commission from each premium, equating to around $262,000,000 in commissions per year in Queensland alone,” Mr Anderson maintains. “A co-operative plan would reduce premiums assist those owners who are currently finding insurance hugely expensive if not unobtainable.”
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