Allianz Australia has established a strategic venture with new underwriting agency Strata Community Insurance, with plans to grow its underwriting business in the sector.

“Allianz currently writes less than 2% of the strata market and has a strong desire to expand our presence in this rapidly growing market segment,” National Manager Underwriting Agencies Brett Williams told insuranceNEWS.com.au.

“Strata Community Insurance is the right partner to help achieve this.”

New business will be transacted through the venture from November 1, and Allianz’s existing portfolio will transfer to Strata Community from January 1. The insurer will wholly underwrite all products issued by Strata Community after the transition period.

The Australian strata insurance market’s annual premium is estimated at about $1 billion, and it is growing due to many homeowners and renters’ lifestyle choices.

Allianz says the strata operation’s key regions will be Sydney, Melbourne and the Gold Coast, but a national approach will be taken to manage risk accumulation.

“Strata Community Insurance will selectively offer capacity in the northern Australian region based on the risk being presented and the partner involved,” Mr Williams said. “This approach aligns to Allianz’s current policy for property business in northern Australia.”

Details of the agency agreement are confidential.

Strata Community was founded by insurance professionals with four decades of collective experience in the sector. Paul Keating, the former MD at QBE-owned CHU Underwriting Agencies, is MD.

The business will open shortly with branches in North Sydney, Brisbane, Melbourne, Perth and Adelaide.
 
“There are opportunities within the sector, and we are bringing a fresh approach and have some new product and service ideas,” Mr Keating told insuranceNEWS.com.au.

“We think we can position ourselves a little bit differently to the people who are already participating in the market.”