Strata Insurance Commission in Perth: What You Should Know
When your Perth strata company pays thousands of dollars each year for building insurance, there's an important question every Council of Owners should be asking: Is our strata manager receiving a commission from our insurance - and if so, what additional service are we actually receiving for that money?
A Question of Transparency and Value
At Ikon Strata Management, we believe every dollar your strata company spends should deliver genuine value to your community.
That's why we've made a deliberate choice: Ikon SM does not retain insurance commissions.
What is an Insurance Commission?
When strata insurance is arranged, some strata management businesses receive insurance-related commission or remuneration connected with the policy.
Depending on the size of the scheme and its insurance premium, that remuneration can represent a significant amount of money each year.
For a Perth apartment building, that could easily be hundreds or even thousands of dollars annually.
The Real Question: What Extra Service Are You Paying For?
Here's the key issue: If the strata manager is already being paid a management fee to administer the scheme, and insurance forms part of that management responsibility, we believe owners are entitled to question why additional remuneration should be generated simply because an insurance policy is being placed or renewed.
If there is no meaningful additional service attached to that payment, it's effectively a fee for no additional service.
And we don't believe that's the right way to do business.
It's a question worth asking your strata manager directly:
Do you receive a commission on our strata insurance?
If yes, how much?
What additional service does your business provide to earn that commission?
Be cautious if the answer is vague or if the "additional service" is something they're already paid to do as part of your management fee.
The Ikon SM Approach: Insurance Shouldn't Be a Revenue Stream
At Ikon Strata Management, our philosophy is different.
We procure, negotiate and arrange strata insurance on a no-commission basis to Ikon SM. We don't believe the insurance premium paid by owners should become an additional revenue opportunity for their strata manager.
Instead, our focus is on securing appropriate cover and competitive terms for your Perth strata company, whilst being completely transparent about how Ikon SM is remunerated.
It's part of a broader philosophy that underpins our business: your money should work for you, not for us.
Where Does That Value Go Instead?
Rather than retaining an insurance commission, we redirect the equivalent value into practical, hands-on services for your property through our Facilities Light Package.
This means what might otherwise have been passive remuneration becomes:
Proactive building oversight throughout the year
Maintenance coordination and planning
Contractor management and scoping
Works supervision and compliance support
Longer-term asset planning for your building
Facilities Light is designed to take pressure off the Council of Owners by providing greater professional oversight of the building throughout the year.
Instead of money disappearing into a strata manager's profit margin as an insurance commission, owners actually see value being delivered back into their property.
The Bottom Line
You should know what you're paying for, and you should receive genuine value in return.
When your Perth strata company reviews its management arrangement, it's worth having a conversation about insurance commissions. Ask the questions. Get transparent answers.
And consider whether the money your building spends on insurance should really be padding your strata manager's bottom line - or working harder for your community.
Questions About Your Current Arrangement?
If your Council of Owners has questions about insurance commissions or would like to discuss a more transparent approach to strata management, we'd be happy to have a conversation.
Send us a copy of your current strata management agreement. We can review the insurance-related provisions and help your Council understand exactly what you're paying for - and what you could be getting instead.
No pressure. No sales pitch. Just transparency about how your building's money is being used.