The Australian Securities & Investments Commission has announced relief to simplify disclosure when two or more insurers jointly provide residential strata insurance for a single property that is too large for one insurer to cover. Under the relief, only the lead insurer must prepare the Product Disclosure Statement (PDS), alongside a supplementary PDS identifying each participating insurer and its share of the risk. The approach is intended to support cover for high-value strata properties while maintaining disclosure for owners’ corporations that are retail clients under the Corporations Act 2001. Insurers and, where relevant, brokers must assess whether an owners’ corporation is a retail or wholesale client on a case-by-case basis, including by considering whether the insurance is provided in connection with a small business, with small business status depending on factors such as profit motive or profit generation.
Australian Securities & Investments Commission 2026-03-11
Australian Securities & Investments Commission eases Product Disclosure Statement rules for multi-insurer residential strata insurance
The Australian Securities & Investments Commission has introduced relief to streamline disclosure for residential strata insurance involving multiple insurers. Only the lead insurer is required to prepare the Product Disclosure Statement, with a supplementary statement detailing each insurer's risk share. This measure aims to facilitate coverage for high-value strata properties while ensuring compliance with the Corporations Act 2001.