ASIC Eases PDS Rules for Strata Insurance Providers

Detected March 16th, 2026

Summary

ASIC has introduced new relief measures for residential strata insurance providers. Under the changes, only the lead insurer will be required to prepare a Product Disclosure Statement (PDS), with a supplementary PDS listing other participating insurers.

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What changed

ASIC has announced new relief measures for insurers providing residential strata insurance. The changes streamline the Product Disclosure Statement (PDS) requirements, stipulating that only the lead insurer needs to prepare a PDS. A supplementary PDS will be required to list the involvement and risk share of any other insurers involved in covering a single strata property. This aims to facilitate cover for high-value strata properties while ensuring owners' corporations, classified as retail clients, receive necessary information.

Insurers and brokers must continue to assess owners' corporations on a case-by-case basis to determine if they qualify as retail or wholesale clients, considering factors such as whether the insurance is for use in connection with a small business. This guidance is based on industry consultation and seeks to balance regulatory requirements with market needs.

What to do next

Review updated PDS requirements for strata insurance policies
Ensure only the lead insurer prepares the primary PDS
Prepare supplementary PDS listing other insurers' involvement

Source document (simplified)

Newsroom

Print Share ASIC has announced new relief measures to make it easier for insurers to work together on residential strata insurance policies that are too large for a single insurer to cover.

When two or more insurers team up to provide cover for a single strata property, only the lead insurer will need to prepare a Product Disclosure Statement (PDS).

The lead insurer will also prepare a supplementary PDS that lists the involvement and share of the risk by any other insurers involved. These additional insurers will not need to prepare their own PDS.

This streamlined approach aims to help insurers offer cover for high-value strata properties, while also ensuring that owners’ corporations—when classified as retail clients under the Corporations Act 2001 —still get the information they need about insurance arrangements.

Background

ASIC introduced these changes after receiving support from industry stakeholders during a targeted consultation.

Whether an owners’ corporation qualifies as a retail or wholesale client needs to be determined by insurers and, where relevant, brokers on a case-by-case basis.

This assessment depends on matters such as whether the insurance is provided for use in connection with a ‘small business’.

The classification of owners’ corporations as a small business depends on a range of factors such as whether they have a profit motive or generate a profit.