The strata insurance environment remains stable under the current soft market conditions. As insurer capacity selectively returns, well‑managed strata schemes that can present robust risk management data and maintenance records will be perceived as desirable risks. Well‑maintained buildings located outside cyclone and flood zones, with clean claims histories, can expect flat premiums or even rate reductions relative to their risk exposure.
Underinsurance continues to be a concern, as elevated construction costs and inflation outpace the Consumer Price Index. Accurate and current building valuations are critical to avoid underinsurance, coinsurance penalties, and coverage shortfalls in the event of a claim.
Owners Corporations and strata committee members have become more attuned to the regulatory environment. Recent regulator‑led reforms focusing on strata insurance affordability and transparency in commission disclosures have had a positive impact, giving policyholders greater awareness of governance requirements.
With strata‑titled properties comprising a significant share of the Australian housing market, we are seeing private equity backing for tech‑driven strata platforms. While AI‑enabled systems can improve access to faster quotes and enable digital claim management, they also introduce new risks around data governance, model transparency, and the potential for “black box” telematic underwriting that may disadvantage complex or higher‑risk buildings with larger insurable values.
Larger schemes exceeding $100M in insurable value require in‑depth insurance declarations and validation of building information. Smaller committees should ensure that tech‑driven placements still meet coverage needs and do not sacrifice wording quality for speed or convenience.
Owners Corporations should take practical action ahead of renewal to ensure proper risk presentation to insurers. They should provide clean, data‑rich information on buildings, including construction type, occupancy, security, and fire protection. Accurate insurable valuations are imperative, and details on maintenance logs and defect rectification plans can directly assist in improving rating and capacity.
Continue reading our full range of market updates:
- Insurance Market Overview: January 2026
- Claims
- Workers Compensation
- Corporate and Multinational Risk
- Construction, Property and Development
- Financial Lines
