A broker has recently made some public statements of concern with how StrataRatings operates and this post will respond to each of these concerns. The original comment can be found here.
Let’s firstly identify the flow of cash to understand any financially driven biases.
Broker: Gets paid commission (usually 20%) when an Owners Corporation places a policy through them. Therefore, are incentivised to encourage schemes to use their Broking services.
StrataRatings: Gets paid a flat licencing fee ($1,250/qtr) from insurers when they use StrataRatings logos in their marketing. No incentives exist as to who with and how schemes place their policies.