Transforming strata insurance through innovation

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Weather events, cost pressures and regulatory scrutiny are increasing insurance complexity for strata managers and brokers. With 10% of Australians living in apartments, the need for innovation in this space is rising rapidly. CHU discusses the latest developments

THE BUSINESS of managing strata is changing. Regulatory pressures, rising costs and the heightened risk of catastrophic weather events all contribute to challenges that increase the difficulty of securing insurance coverage. Still, the industry has remained resilient. Urban centres like Sydney continue to grow, with large-scale developments underway, building on more than $1.3 trillion in coverage of strata assets across Australia. Navigating the complexity of strata management requires both speed and accuracy when it comes to insurance. Being able to rapidly assess and accurately price the insurability of

CHU is a leading Australian underwriting agency, providing specialised strata insurance solutions since 1978. As one of Australia's largest strata insurance underwriters, CHU offers comprehensive coverage for residential and commercial strata properties, including building, liability, and common property protection. With a national presence and a commitment to excellence, CHU continues to set industry standards in strata insurance, helping safeguard communities and properties across Australia.

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Size of the strata market in Australia

market value

“It requires significant resources and a broad risk appetite to issue over 200,000 [strata insurance] quotes a year. The hope is that brokers and their customers will recognise the reliability CHU has consistently offered over 46 years”

Kimberley Jonsson, CHU

an asset requires significant innovation on behalf of the insurer to support brokers and strata managers at every stage of the insurance life cycle. CHU Underwriting Agencies continues to lead in this space, building on its already significant investment in systems, products and risk management services that deliver unique capabilities to benefit brokers, strata managers and their customers.

Efficiency and transparency are critical in the strata sector, where compliance requirements – such as the industry-standard three-quote rule adopted in some states – can slow down the coverage process. Enter StrataTech, CHU’s proprietary platform, which processes over 200,000 quotes annually. Approximately 40% of transactions flow through API integrations, and 70% of new business quotes submitted via StrataTech are processed within the same day. CHU’s focus on AI and technology means brokers can expect speed and efficiency in obtaining quotes and managing claims, supported by the expertise of CHU’s strata specialists. Kimberley Jonsson, CEO at CHU, notes that this technology fills a critical gap in the market.

There may be occasions when CHU’s quote is the only one presented to a client. This can lead to misconceptions that CHU was the only party approached to quote. But other underwriters are often unable to quote due to the risk characteristics or their inability to manage the sheer volume of quotes requested. “It requires significant resources and a broad risk appetite to issue over 200,000 quotes a year,” Jonsson says. “The hope is that brokers and their customers will recognise the reliability CHU has consistently offered over 46 years.” Beyond quoting efficiency, CHU’s claims management systems provide brokers with real-time updates and transparency throughout the claims life cycle, allowing brokers to keep their clients updated when it matters most.

The Australian strata market is increasingly vulnerable to climate risks. With extreme weather events like cyclones and floods becoming more frequent, traditional underwriting has struggled to keep pace. The Insurance Council of Australia’s Insurance Catastrophe Resilience Report 2023–24 notes that the impact of extreme weather on the Australian economy has tripled over the past three decades. The report also emphasises the need for an increased focus on risk mitigation. With preparedness and resilience more important than ever, CHU has been developing improved systems and processes to ensure it can respond quickly in disaster situations. CHU has integrated advanced mapping tools to aid in scenario planning, ensuring it’s ready to act and support customers with efficiency and empathy. As a strata specialist, CHU has extended its services beyond insurance and offers a range of services to support its customers. Building inspections have been another key area of innovation, with CHU making use of AI, drones and LiDAR tools to provide a precise digital twin of a building, enabling faster, more accurate assessments, as well as identifying risks and vulnerabilities as early as possible.

This technology proved indispensable during Cyclone Jasper in 2023, when detailed inspections assisted CHU in managing claims at a rapid pace. Safety is another key benefit of this virtual inspection tool used after a catastrophe. With fewer people required on site, the drone can also capture the detail required for assessing and quoting for repairs. Tech-driven efficiency, coupled with a robust support team, ensures CHU can respond promptly to demanding market conditions and complex requests. CHU’s innovation also extends to servicing models, making sure it can effectively support its customers. CHU’s National Specialty Risk Team addresses emerging and complex risks such as building defects, combustible cladding, and buildings with complex issues. A dedicated catastrophe management team was established during the 2022 Queensland and Northern NSW floods (CAT221) and has remained a permanent fixture.

The future of strata insurance isn’t without its challenges; however, new technology brings the opportunity to approach those challenges differently. With 10% of Australia’s population living in apartments and a market size of $2.2 billion, the demand for robust, adaptive strata insurance products and services is significant – and it’s only set to grow. With the market evolving rapidly day to day, staying static simply isn’t an option. Jonsson says innovation, preparedness and a focus on quality products and services with a customer-centric view will be the guiding light for CHU going into 2025. “Recent catastrophic weather events highlight the value of a partner that approaches innovation as the intersection of technology, service and scale to provide the best customer-focused solutions to complex problems,” she says.

Modern Commercial Real Estate Apartment Building

Achieving speed through technology

Innovating for resilience in an unpredictable climate

Published 24 Feb 2025

“Recent catastrophic weather events highlight the value of a partner that approaches innovation as the intersection of technology, service and scale to provide the best customer-focused solutions to complex problems”

Kimberley Jonsson, CHU

$2.2bn

strata schemes

356,788

of Australians living in apartments

10%

Source: City Futures Research Centre, UNSW Sydney, June 2020

Benefits of CHU’s virtual building inspections

A safe and accessible inspection post catastrophe, especially for roof inspections or dangerous sites

Source: CHU State of Strata Market report

Spearheading innovation

Safety

Replace high-cost and timely inspections with a virtual inspection in a fraction of the time

Efficiency

State-of-the-art 3D LiDAR technology combined with AI-powered drone systems

innovation

Inspection-grade 3D modeling and 360-degree internal inspections and floor plans

Accuracy

Identify defects, damage and faults to prevent costly claims

prevention

Reduce carbon footprint, saving on energy and fuel from multiple and lengthy site visits

sustainability

Looking ahead: A smarter, more resilient strata market

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Risk Management

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