Vero’s New Strata Product Signals a Shift in How Complex Risks Are Priced

The most notable feature is its nil-commission model. At a time when strata insurance commissions remain under intense scrutiny in several states, Vero’s approach gives owners corporations and bodies corporate another example of how remuneration models may evolve. For committees already questioning whether insurance costs are being driven by risk, advice, administration or intermediary payments, this development is worth watching closely.

The launch also builds on Suncorp’s earlier decision to treat strata as a commercial growth area rather than simply a consumer insurance line. In practical terms, this new product appears to be the next step in that strategy: a broker-distributed offering aimed at buildings where standard underwriting can be too blunt, especially where defects, maintenance history or regional exposure complicate the placement.

For strata committees, the more significant change may be Vero’s stated focus on risk-based underwriting. Buildings with known defects can face declined cover, sharp premium increases or limited insurer appetite, even where owners are actively working towards remediation. A model that assesses the defect, the management response and the remediation pathway may give well-governed schemes a better chance of having their efforts recognised in pricing and terms.

That does not mean defective buildings should expect easy cover. Rather, the message is that documentation, transparency and a credible plan matter. Committees should ensure defect reports, engineering advice, maintenance records, levy planning and contractor updates are organised before renewal discussions begin. Where a building is in a cyclone, flood or severe-weather exposed region, evidence of mitigation work may also become increasingly important.

The rollout reinforces the value of specialist brokers who understand strata risk, insurer appetite and the practical realities of committee decision-making. It also underlines why owners should not treat renewal as a once-a-year administrative task. Reviewing sums insured, disclosure obligations, exclusions, excesses and governance controls can make a material difference to both insurability and long-term cost.

For Australian strata owners, Vero’s move is not just another product launch. It is a sign that insurers are experimenting with more targeted ways to price complex buildings. Schemes that can demonstrate strong governance and proactive risk management may be better positioned when they compare options in a changing market.