Whittles action costs owners

A national strata management company owned by ASX-listed insurance broker AUB Group, Whittles Strata Management, has made an unauthorised insurance claim that has led to a crippling rise in insurance premiums for owners in a Northern Territory apartment complex. 

The insurance claim, lodged without the approval of the owner’s corporation, has resulted in annual insurance premiums for the complex rising to 2.5 times their previous price, creating hardship for the apartment owners in the complex.

Australian Apartment Advocacy (AAA) CEO Samantha Reece says commissions paid by insurers to strata companies for arranging building insurance (part of their job as managers) can create untenable conflicts of interest.

“These arrangements, where strata managers are receiving commissions from insurers of 20% and sometimes significantly more, are being reviewed by most State Governments,” Ms Reece says.

“It’s clear that the size of these commissions, estimated to be worth more than $200 million a year across Australia, create problematic financial incentives for strata managers not to act in the best interests of building owners.”

Whittles Strata Management is owned by ASX-listed global insurance broker AUB Group, which acquired Whittles Strata Management when it bought MGA Whittles in 2020.  

The Northern Territory case is complicated by a breakdown in communication between Whittles Strata Management, the chair of the owners’ corporation and the rest of the owners’ committee. In this case, a leak was fixed, the chair of the owner’s corporation requested extra remedial work, said to be unrelated to the leak, and asked to have this claimed on insurance. Whittles Strata Management communicated with the owners committee in January 2025, but they failed to respond.

When questioned about whether the claim should have been lodged and also about the size of the commission after an extraordinary general meeting this week, Whittles Strata Management terminated its contract with the NT owner’s corporation.

Whittles Strata Management is a member of the Strata Community Association, which has said it will phase out acceptance of insurance commissions in some states but has recently backflipped to say that it will be a voluntary choice.

Ms Reece stated that after the exposure on 4 Corners programme in 2024 of dodgy commission practices, it was clear that some of the largest strata management companies had not taken heed.