Aussie insurance body urges strata law reforms to counter rising premiums

Building defects cost $1.3b annually for residential apartments across Australia.

Poor governance and deferred maintenance are transforming insurable buildings is driving up premiums for one in five people living in a state building locate at Victoria, Australia.

In a statement on 12 September 2025 the Insurance Council of Australia called for a reform of strata laws, saying that building defects cost $1.3b annually for residential apartments across Australia.

Many strata buildings in particular are facing insurance affordability challenges or becoming uninsurable due to structural issues and inadequate risk management, the insurance council warned.

Reforms suggested included lowering the unanimous agreement threshold for strata complex sales to enable faster renewal of aging, uneconomic buildings that pose insurance risk.

The council is also asking for full disclosure of all payments to strata managers that may influence insurance product selection.

They also ask for a thorough market impact assessment to be done before banning commissions to avoid unintended premium increases.