Frequently Asked Questions
Informed consent for insurance commissions
Effective 9 July 2025
1. What is informed consent?
Informed consent is the formal approval for CIB to obtain insurance quotations that include commission as part of the premium. It ensures clients understand how we are remunerated and that their agreement to this is documented before we finalise the insurance.
2. Why is this being introduced now?
From 9 July 2025, when insurance brokers provide personal advice to retail clients, ASIC regulations require brokers to obtain informed consent each year before they obtain insurance quotations including commission. These changes are part of ongoing efforts to improve transparency and protect client interests.
3. Who provides the consent?
Consent must come from the Owners Corporation. The authority to consent should be clearly documented.
4. Who provides consent if the strata scheme is under a Part 5 Agreement?
For Part 5 Agreements where the strata manager is essentially “the committee” and is authorised to make decisions regarding all Committee matters, such as expenditure, obtaining quotes, and commissioning work, informed consent must be provided by the strata manager. They will need to keep the documents of the Part 5 Agreements stored in lieu of informed consent proof.
5. How will CIB capture informed consent?
New clients: we will use the Letter of Appointment to seek informed consent at the time of appointment. We’ll request subsequent informed consent in the Pre-Renewal Declaration (PRD) at each renewal.
Existing clients: the strata scheme will receive a PRD at the start of the renewal process. This form will include options for how we are paid and require the scheme’s formal instructions before we request quotations from insurers.
6. What happens if the strata scheme doesn’t return the signed PRD?
We can’t obtain quotations including commission or place cover without a strata scheme’s informed consent. This may delay the renewal and risk a lapse in insurance coverage if not resolved in time.
7. Will this change the cost of insurance?
Not necessarily. The cost of insurance is determined by the insurer, the policy coverage, and any broker fees or commissions. The important change is that strata scheme’s will now formally choose and approve the method of broker remuneration before we obtain quotes.
8. What will be included in the Broker Advice document?
The final Broker Advice will include:
a summary of all quotes
the remuneration structure chosen
the dollar amount of any commission or fees
a clear and compliant disclosure using the SCA Strata Insurance Disclosure Best Practice Guide.
9. Can strata schemes change their remuneration preference in the future?
Yes. A strata scheme can update its preference before each renewal cycle. We will issue a new PRD annually, allowing the scheme to reassess and choose the most appropriate method
10. What if a Managing Agent has delegated authority to approve insurance?
If a strata scheme has contractually delegated this authority, the Managing Agent can complete the PRD on the scheme’s behalf. CIB will rely on this authority being valid and current. We recommend reviewing the agency agreement or obtaining a formal Committee resolution if in doubt.
11. What if we have questions or want to learn more?
Please contact your CIB Account Manager directly or reach out to our team via email or phone. We are here to help guide everyone through this process and answer any questions.
Updates and additional guidance
Visit the ASIC website or refer to industry resources such as the SCA Strata Insurance Disclosure Best Practice Guide.
CIB is committed to transparency, client choice, and quality advice.
We are here to make this transition as seamless as possible.