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 receive a commission for arranging an insurance policy. 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 can receive a commission. These changes are part of ongoing efforts to improve transparency and protect client interests.
3. Who provides the consent – the strata committee, the Owners Corporation or the Managing Agent?
Consent must come from the Owners Corporation. In many cases, this will be delegated to the strata committee or Managing Agent via a General Meeting resolution or an existing agency agreement. The authority to consent should be clearly documented.
4. 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.
5. What happens if we don’t return the signed PRD?
We cannot proceed with obtaining quotations or placing cover without a strata scheme’s informed consent. This may delay your renewal and could risk a lapse in insurance coverage if not resolved in time.
6. Will this change the cost of our 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 you will now formally choose and approve the method of broker remuneration before we obtain quotes.
7. What will be included in the Broker Advice document?
The final Broker Advice you receive will include:
a summary of all quotes
the remuneration structure you chose
the dollar amount of any commission or fees
a clear and compliant disclosure using the SCA Strata Insurance Disclosure Best Practice Guide.
8. Can we change our remuneration preference in the future?
Yes. Your scheme can update its preference before each renewal cycle. We will issue a new PRD annually, allowing you to reassess and choose the most appropriate method.
9. What if our Managing Agent has delegated authority to approve insurance?
If your strata scheme has contractually delegated this authority, the Managing Agent can complete the PRD on your behalf. CIB will rely on this authority being valid and current. We recommend reviewing your agency agreement or obtaining a formal Committee resolution if in doubt.
10. 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 your scheme through this process and answer any questions you may have.
11. Where can we find updates or additional guidance?
You can 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.