Suncorp’s intermediated brand has launched a strata homes product “designed from the ground up” to address market challenges making it difficult for brokers to place cover.

Vero’s intermediated residential strata will initially be available in Far North Queensland and Darwin under a nil-commission model, with a phased national rollout planned over coming months.

“Brokers have been seeking a strata model that offers more choice and confidence for their clients,” Vero CEO for commercial and personal injury Michael Miller said.

“We have built this from the ground up to offer a tailor-made solution that suits the needs of the modern strata market.”

Vero says the product’s “smarter approach” to building defect risk is a central feature.

“Right now, strata committees that do the right thing and disclose known building defects can find themselves penalised for it, either through declined cover or arbitrary premium increases,” Mr Miller said. “This discourages the kind of transparency the market needs.

“With our approach, we want to work with brokers and strata managers to identify and assess defects, determine a path to remediation and price accordingly. If a building is actively addressing its risks, this should be reflected in their premium.”

Suncorp said in February that strata was a focus area as it reclassified the line from consumer to commercial.

The residential strata offering, launched today, adds to the Vero Specialty Lines suite.

“Each VSL product shares the same goal, to deliver specific solutions to brokers with a focus on expertise and efficiency,” Mr Miller said.

“Intermediated strata is a natural extension of this objective, and we’ll only grow from here.”