If you place large residential strata, you know the documentation headache that comes with co-insurance arrangements. ASIC has finally done something about it and it’s worth understanding exactly what’s changed before your next large strata renewal.
Under ASIC Corporations (Strata Title Co-Insurance) Instrument 2026/156, the requirement to issue a Product Disclosure Statement now sits with the lead insurer only. Following insurers no longer need to produce their own separate PDS. Instead, the lead insurer issues a supplementary PDS listing each co-insurer and their share of the risk.
Why This Matters
Previously, placing a large strata scheme across multiple insurers could mean multiple disclosure documents for the same building duplicative, confusing for committees, and an administrative burden that added friction to an already complex placement. The new instrument cuts through that without removing the transparency that owners and committees actually need.
Under the new structure, an owner or committee member reading their insurance documents should still be able to clearly understand who is on risk and for how much. It’s just presented through a single, structured disclosure rather than a stack of separate documents.
Why Co-Insurance Exists in the First Place
For owners and committee members who are unfamiliar with the concept – co-insurance isn’t a red flag. It is often the reason adequate cover is available at all for very large schemes. High-rise residential buildings and large mixed-use complexes can represent a concentration of risk that a single insurer will not take on fully at commercially reasonable terms. Co-insurance spreads that risk across multiple underwriters, each taking a defined proportion.
For brokers, the 2026 instrument reduces compliance friction without changing the advice obligations. You still need to identify the right co-insurance structure for the risk, present terms clearly, and make sure the committee understands the arrangement, including claims notification requirements when multiple insurers are involved.
It’s a sensible administrative reform. It doesn’t change what good large strata placement looks like, but it does make doing it properly a bit less painful.
Navigating complex placements whether it’s large strata, co-insurance structures, or hard-to-place commercial risks is something Better Broker Network members do with confidence, backed by experienced support from people who’ve been in the market for decades. Find out what that looks like in practice.