The Strata Sector is a hot market at the moment, with new capacity entering the sector from a number of previously dis-interested providers. Interest is being fuelled by record growth in new strata developments and capital providers looking for new opportunities to maximise their returns.
New players are continually entering the sector attempting to secure market share, but with limited brand awareness and track record they can really only compete on price through discounting. Quite clearly the strata sector is currently experiencing a cycle of aggressive discounting driven primarily by these new entrants.
This is a hazardous environment for the Strata Sector with prices often dropping to unsustainable levels.
Therefore the important issue for the Strata Market is “who will still be in the market in 2 years’ time?”
This type of cycle is not new to the Strata Sector, or any other niche market. Strata has seen providers such as ACE Insurance and SUNCORP, actively targeting the sector due to the growth opportunities only to dramatically exit after sustaining heavy losses from events such as Cyclone Yasi.
CHU has endured a number of these cycles and continues to be committed to a long term future in Strata.
CHU’s strength over the last 5 years CHU has been demonstrated through payment of approximately $750mil in claims to Strata Schemes nationally.
In fact CHU’s commitment to the sector has never been stronger. CHU is about to embark on a significant investment strategy over the coming 12 months to increase the digital capabilities of the organisation enhancing its processes and tools benefiting both CHU and their customers.
The trust in the CHU brand didn’t happen overnight or by chance. CHU is Australia’s first and largest strata insurance specialist, operating in every major State with over protecting over 100,000 schemes nationally. For more than three decades, CHU has relied on the professionalism and dedication of its people and on the long standing support from many active partnerships fostered with managers, brokers, suppliers and organizations throughout Australia.