Ready Strata Players One, Two, Three, etc

or, all the players in the strata insurance multiverse game …

A Quick Take

In the strata title insurance multiverse game, there’s 8 key payers vying for the gold coins, power ups, easter eggs and more and they mostly dominate the game.  So, if you want to play and, hopefully win, you need to know who they are, why they are there, and their key characteristics. Are you ready strata insurance game players one, two, three, etc …

[a 5:50 minute read, with 1045 words]

The Full Article

INTRODUCTION

If you imagine strata insurance as a multiverse or multi player video game then you’d want [and need] to understand the players in the game to have any chance.  Who they are, why they are there, and what are their key characteristics? 

Otherwise, there’s no gold coins, power ups, easter eggs, etc and you’ll be blindsided and re-spawning with nothing in your wallet just to keep playing, let alone to win.

So in this article I’m identifying each of the 8 strata insurance multiverse players as a kind of new users’ guide.  Future articles will focus on each of the players in more detail for advanced play mode and the harder and secret strata insurance game levels.

So, let’s overview the 8 strata insurance game players.

THE 8 STRATA INSURANCE GAME PLAYERS

Insurers

At the beginning [or is it the end] are insurance companies.

They’re typically very big organisations and almost no other player ever gets to deal with them. And, there aren’t many of these in the strata insurance game.

They ultimately take on the risk of paying insurance claims when things go wrong and get paid the underlying premiums for doing so. 

Occasionally, insurers will also issue policies and handle claims directly with strata building customers.  But, typically, insurers operate through underwriters and brokers.

Insurers get paid by the customer that’s buying the insurance.

Underwriters

Underwriters look a lot like insurers and act a lot like them too. 

But they are actually intermediaries between insurers and most other players in the strata insurance game.

Underwriters evaluate and analyse the risks involved in insuring strata buildings, people and other things. Their main job is to decide whether to offer insurance coverage, and if so, under what terms and at what cost.

Underwriters use a variety of data, including financial records, claims history, and strata building information, to assess the likelihood and magnitude of potential losses and to develop policies, exclusions, excesses and premiums.

So, they’re the ones shaping available insurance cover, terms and risk pricing in the strata insurance game.

Underwriters get paid by the customer that’s buying the insurance.

Brokers

Insurance brokers operate between insurers and underwriters that provide insurance and the strata building customers seeking insurance coverage acting as an intermediary.

There’s lots of them in the strata insurance game.

And, unlike insurance agents, who typically represent one specific insurer, brokers represent the customers’ interests, helping them find the best insurance policies for their needs at competitive prices. So, many [but not all] strata insurance brokers deal with more than one insurer or underwriter.

Brokers also provide advice, arrange insurance cover, issue policy documents and verification, and assist with and/or manage claims.

Virtually all Australian strata insurance is arranged via brokers.

Brokers are paid by insurers and underwriters via commissions on insurance policies and, sometimes, by customers via broking fees.

Insurance SPVs [Special Purpose Vehicles]

Sometimes a second intermediary exists between the insurer or underwriter, brokers and the strata building customers that’s created as a special purpose vehicle or entity for that insurance.

Typically, they are partnerships or other legal structures set up between an insurance broker and a strata manager to arrange and manage the insurance for that strata manager’s customer strata buildings.  So, they are one off and limited operation entities [SPV’s].

So, think of them as secondary brokers operating for narrower strata market segments with only some hybrid responsibilities.

There’s an unknown number of Insurance SPVs playing in the strata insurance game, spo you probably not know they’re there, and they’re very hard to spot.

Insurance SPVs are paid by insurers and underwriters via commissions on insurance policies and, sometimes, by customers via broking fees.

Strata Managers

Strata managers are appointed to manage strata building operations including arranging insurance and related activities for those strata buildings.  So it’s a regular and frequent activity.

To do that strata managers deal with insurers, underwriters and brokers on the one side to arrange quotations, policies and claims, and, on the other side, with the strata buildings that need insurance and strata owners that have to pay for that insurance.

As a result, all strata managers play in the strata insurance game. And, they are like go between players operating to help other players.

Strata managers are paid by customers via their strata management fees and by insurers, underwriters and brokers via commissions on insurance policies.  Plus, sometimes strata managers are also paid via Insurance SPVs.

Valuers & Quantity Surveyors

Because strata buildings must be insured for the replacement or reconstruction value of their buildings, that amount needs to be determined from time to time.

So, valuers and quantity surveyors get involved to make those assessments and provide strata buildings, strata managers, brokers, underwriters and insurers with reports about the likely replacement or reconstruction costs.

So, think of them as extra players that help other players in the strata insurance game.

Valuers and quantity surveyors are paid by strata buildings on a fee for service basis.

Strata Buildings & Committees

Strata buildings must have insurance covering a range of risks for their buildings and to protect strata owners from liabilities.

So, strata buildings are the insurance customer, with their risks covered by the policies issues by strata insurers and underwriters, arranged by brokers, insurance SPVs, and strata managers, on the advice of valuers and quantity surveyors.

Think of strata buildings as the compulsory players in the strata insurance game; they must play, always, and whether they win or lose.

The strata building isn’t paid, but rather, makes payments that go to almost all the other players.

Strata Owners

The players you rarely see in the strata insurance game but who are critical to it, are the strata owners of the strata buildings that must have, need, buy, and use insurance. 

Without them there is no game. 

And, most importantly without strata owners there’s no gold coins in the strata insurance game that are being chased by all the other players.

CONCLUSIONS

If you imagine strata insurance as a virtual reality game then it’s not hard to see how there’s different kinds of players, in varying numbers, with differing roles, skills and objectives, all working together [and sometimes not] to make sure every strata building is always insured and covered for a variety of risks and dangers.

It’s a game but it’s not quite Fortnite or Mario Kart.

However, it may not be too far removed from either with some surprising winners and losers.

April 23, 2024

Francesco ...