Benchmarking strata insurance broker pricing – an expert report by John Trowbridge

Benchmarking Strata Insurance Broker Pricing – Trowbridge Report overview

NSW Fair Trading does not regulate insurance brokers.

Benchmarking Strata Insurance Broker Pricing (the Trowbridge Report) provides a guide to help you understand what you might reasonably expect an insurance broker to charge when assisting owners corporations with strata insurance.

The Trowbridge report outlines the typical payments strata managers receive where they use an insurance broker to arrange strata insurance for owners corporations.

NSW Fair Trading provides this information as guidance only. You should consider the specific circumstances of your building, as these may affect the fees charged and services provided.
 

Using the Trowbridge Report to compare strata insurance broker fees

Insurance brokers charge for their services in different ways at different levels, depending on the size of the strata scheme and arrangements they may make with owners and strata managers.

If both an insurance broker and strata manager are involved, the owners corporation may pay: 

• a commission (included in the insurance premium), plus a broker fee. The total of commission and broker fee is usually shared between the broker and strata manager (known as the commission rebate/broker fee model)
• a broker fee only with no commission included in the insurance premium. This broker fee is shared between the broker and strata manager (broker fee only with sharing model); or
• a broker fee only with no commission included in the insurance premium, that the broker keeps in full¹ (broker fee only with no sharing model).

Table 1 is from the Trowbridge Report and sets out the typical prices that owners corporations can expect to pay insurance brokers when obtaining strata insurance. The prices can vary depending on the size of the strata scheme (small, medium or large) and other factors.

These prices are indicative only. Insurance broker prices can be outside the ranges set out in Table 1 for valid reasons. For example, prices may be higher or lower depending on the age and condition of the building (including how well maintained it is or if it has any defects), how effective the owners corporation is at managing its scheme and the scope of services of the broker and strata manager. 

¹Since 3 February 2025, strata managers cannot receive a commission on insurance if the owners corporation obtained the quote and arranged the insurance and its payment independently of the strata manager.  
 

How to use the table to work out the typical broker price that applies to your scheme

The table on page 4 of The Trowbridge Report uses ‘scales’ based on a property’s insurance base premium². There are three ranges: ‘small scale’ (below $5,000), ‘mid-scale’ ($5,000 to $40,000) and ‘large-scale’ (above $40,000). The ranges have been used to make it easier to describe insurance broker pricing but are approximate only and do not apply in all cases.

To understand if your strata scheme is a ‘small scale’, ‘mid-scale’ or ‘large-scale’ scheme:

• Check your scheme’s latest insurance quote or invoice. It will show the insurance base premium (the main cost of insurance) to be paid.

To understand the method of charging that applies to your scheme:

• Check your scheme’s latest insurance quote or invoice. It should show the commission (if any) included in the base premium and the broker fee, which will be additional to the premium.
• Check if you have a strata manager. If you do, check if they receive a share of the broker fee and/or commission. 
  You can find this information in the insurance quote or invoice, the minutes of your scheme’s last Annual General Meeting or you can ask your strata manager directly.  

²Base premium is the insurance price the insurer sets before other charges such as Goods and Services Tax.
 

Use this table to work out typical prices for small, mid and large scale strata schemes

Insurance brokers and strata managers can use this table before arranging strata insurance for strata schemes.

Small scale strata schemes (i.e. insurance base premium is generally less than $5000)

Mid-scale strata schemes (i.e. insurance base premium generally between $5000 and $40,000)

Large scale strata schemes (i.e. insurance base premium generally more than $40,000)

The Trowbridge Report is available now

Download and use the Trowbridge Report to better understand typical insurance broker pricing. Make informed decisions when arranging strata insurance for your scheme.