Netstrata Proceedings Put Strata Insurance Governance Back Under the Microscope

The matter is now before the Supreme Court of NSW, with hearing dates listed for 27 and 28 July 2026. Netstrata has indicated the charges will be defended, which means owners corporations should treat the allegations as unresolved. Even so, the case is significant because Netstrata is one of the largest strata management businesses in NSW, managing about 1000 strata properties.

For committees and lot owners, the key issue is not only the legal outcome. It is what the proceedings reveal about expectations in a more closely scrutinised strata sector. Insurance placement, service-provider recommendations, related-party arrangements and commission-style benefits are no longer back-office details. They are governance matters that can affect trust, premium value and whether an owners corporation can show it acted in the interests of owners.

This is an extension of the broader debate already affecting strata insurance Australia-wide. Regulators, consumer advocates and industry groups have been examining whether owners receive enough clarity about who is paid, how much they are paid and whether those payments influence recommendations. For buildings facing higher premiums, cyclone, flood, defect or maintenance concerns, the need for clean decision-making is even more important.

Before the next renewal, strata committees should ask for a complete breakdown of all remuneration connected with the policy, including commissions, broker fees, administration charges, referral payments and any benefits flowing to related entities. They should also request evidence of market testing, note why a recommended policy was chosen, and record any declared conflicts in meeting minutes.

Where a building relies on external advice, committees should be clear about the adviser’s role, remuneration model and duty to the owners corporation. Independent strata insurance brokers can still play an important role, particularly for complex buildings, but transparency should be documented rather than assumed.

The practical message is simple: do not wait for a dispute, investigation or claim to discover gaps in disclosure. Owners corporations that actively compare insurance options, question costs and maintain clear records are better placed to secure suitable cover and defend their decisions. As regulatory pressure rises, good governance is becoming just as important as price when arranging strata insurance.