Insurance – Net Format
Zero Commission Insurance.
Strata Revolution Pty Ltd does not accept insurance commissions. We don’t want to! Approaching a somewhat taboo topic within the strata industry we have changed the way we structure your insurance premium each year and in turn how we are remunerated for the provision of insurance services.
Historically Strata Managers have received commissions from insurers or brokers whilst acting as an agent, distributor or Authorised Representative of either provider. This commission has been received for services rendered and in relation the placement and management of insurance products they obtain for their clients under the delegated authority given to managers by the scheme (under the terms of the Management Agreement).
This then facilitates a lower management fee being charged to the Scheme. This concept of commissions although still widely practiced does not provide the Strata Scheme with the best saving possible.
Complete Transparency is How We Do Business
Strata Revolution will not receive any commission and instead charge a fee to the scheme directly for managing your insurance policy in the same month the insurance premiums are paid. As commission is not included in the insurance premium the overall cost is subsequently reduced and saves the Body Corporate money.
Strata Revolution has appointed Honan Insurance Brokers to manage our clients insurance risk. They are responsible for completing the due diligence on each building and its risk profile, sourcing and advising on the insurance markets available and the claims management advocacy at the time of loss.
This process of removing the commission from the insurance premium is commonly called “Net Rating” – in this instance the commission is taken from the base premium resulting in a reduction in same. The Statutory charges are therefore reduced resulting in a more competitive premium.
You Save Money on Premiums
The removal of commission paid to the manager via “net rating” reduces the overall cost of insurance for the scheme, even after an adjustment in management fees.
The Table below represents the suggested model as opposed to a market standard (strata manager receiving commission) approach and the direct model set up by some Strata Schemes on their own behalf. It is worth noting at this point that the Strata Scheme does not have the ability to seek Net Terms from the Insurer or Underwriter directly.
NO HIDDEN KICKBACKS.
YOU SAVE MONEY ON PREMIUMS.
Michelle Russell – Managing Director
Strata Revolution can confidently say that the Strata Manager and the administration staff in a small Strata Agency all assist in insurance matters with all Strata Schemes. Upon analysing the figures, the commissions received were similar to the total staff hours used to assist in standard insurance matters.
Please note; these comments exclude most Commercial Strata Schemes.
Strata Revolution and Honan Insurance Brokers obtain quotes prior to to the Strata Schemes policy renewal date and accept the cheapest policy unless other circumstances are relevant.
Strata Revolution charge the Strata Scheme 20% of the policy’s net premium. This percentage is negotiable on most Commercial Strata Schemes due to the large premiums paid.
Changing Strata Managers has Never Been This Easy
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1. Generate an Instant Quote.
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3. Get a call from us to finalise the details.