70% In. Here’s What We’re Seeing.
When we launched our Ghostbusters campaign, it raised eyebrows.
Some laughed.
Some rolled their eyes.
Some warned that removing insurance commissions would only increase costs for owners.
We’re now roughly 70% through the transition to a commission-free insurance model, and we finally have enough data to move from theme to proof.
Why were insurance commissions embedded in strata premiums?
For years, insurance commissions were embedded in strata premiums. Typically around 20% of the base premium, those commissions formed part of the total cost paid by every Owners Corporation.
It’s not unusual. In fact, it has long been industry standard.
But it meant owners were funding remuneration structures inside their premiums, often without full visibility of how those commissions were structured.
What changed under the new model?
Under our new management agreement:
- Insurance commissions and management remuneration have been removed.
- Brokers now operate on a transparent fee-for-service basis
- No shared commissions
- No embedded percentage
- No hidden margin
This shift was designed to increase transparency and better align insurance pricing with the financial interests of Owners Corporations.
“What’s been most encouraging is that this shift hasn’t been driven by regulation here in Canberra. We’re seeing genuine consumer‑led momentum, with Owners Corporations actively backing long‑term structural change in how strata insurance is priced and managed. While legislation will be important to level the playing field across the industry, it’s our customers who are leading the way by demanding transparency, alignment and better outcomes.”
Rupert Cullen, Chief Executive Officer
Did removing insurance commission reduce strata premiums?
This was the obvious and necessary question.
Across the majority of renewals under the new agreement, premiums have reduced following the removal of commission
The average reduction across the sample currently sits between approximately 14-27%, closely aligned with the remuneration previously embedded in the system.
That alignment matters, as it suggests the structural change is performing exactly as intended.
Why haven’t all premiums decreased?
Now, let’s be clear. Not every building has seen a visible reduction in total premium.
Strata insurance remains a risk-priced market, and several factors influence final pricing:
- Claims history continues to impact insurer appetite and pricing.
- Outstanding building defects affect perceived risk.
- Updated insurance valuations increase sums insured and therefore premiums.
- Broader insurance market conditions remain volatile.
However, even in cases where premiums didn’t fall, the removal of commission has created downward pressure relative to what the premium would likely have been under the previous commission-based model
Buildings with clean claims histories and no defects are experiencing the greatest outcomes, with competitive quotes creating leverage.
What the data is telling us at 70%
There was public commentary suggesting that removing would increase costs for owners.
At 70% transition, the early data tells a different story.
We are seeing:
- Greater transparency in insurance pricing.
- Reduced embedded cost structures.
- Clearer alignment between strata manager and Owners Corporation.
- Increased negotiation leverage in the market.
We are not yet at 100% transition and will publish a final portfolio-wide summary once the full portfolio has moved across.
But the evidence to date is consistent.
What this means for Owners Corporations
This initiative delivers stronger governance, greater transparency and better financial alignment for Owners Corporations across Strata Management.
When remuneration structures are simplified, conversations become clearer and decision-making becomes cleaner.
And ultimately, owners retain greater visibility over where their money goes.
Ghostbusters was designed to start the conversation.
Now the data is doing the talking.
Want to Understand How This Impacts Your Building?
If you’d like to understand how insurance commission structures affect strata premiums and whether your building is paying more than it needs to, connect with our team for an obligation-free discussion.
See the numbers for yourself. Our latest case study highlights the preliminary results of removing insurance commissions and the savings delivered to strata members.