The Queensland Body Corporate Association (QBCA) believes bad Body Corporate managers are driving Insurers out of the market.

The QBCA have asked for investigations by ASIC, ACCC and the Queensland Office of Fair Trading into a test case where a high profile Body Corporate Management firm has altered an insurance quote to ensure their commission paying “preferred supplier” quote was the lowest for insurance.

Investigations will be centred on anti-competitive and insider-trading legislation while also looking at breaches of the Code of Conduct of a Body Corporate Manager.

“There has been something wrong for a long time with the quoting process for Bodies Corporate, where a Manager receives independent quotes from Owners then at the 11th hour can provide a quote from their own commission paying preferred supplier that can be doctored to be the lowest," QBCA CEO, Errol Anderson said.
 
"Insurance companies dedicate a large amount of funds to create and provide policy cover and staffing to support Body Corporate insurance.

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"There is currently a very real problem for Bodies Corporate to source quotes as insurers pull out of the business and stop providing cover, due to both major climate events and being forced out by anti-competitive behaviour.”

According to Mr Anderson some insurance providers and brokers have said they simply will not quote for some Body Corporate Managers as they know they are wasting their own time and that of the insurers.

“As a past manager myself I had serious doubts at that time about the integrity of the quoting process not just for insurance but for any financial product or service where the managers receive a commission from a quote they are linked to.

"How can anyone support a process where managers receive all quotes for the Body Corporate agenda when they are in a position of higher knowledge and trust then proceed to provide their own commission paying lowest quote.

"By having this sham process insurers and other service providers are being driven out of the market and this cannot be condoned.”

Mr Anderson said QBCA expect the cost of insurance and other services will continue to rise for Bodies Corporate unless there is a "strong message" sent to managers that anti-competitive and insider-trading behaviour is unacceptable.