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Cohabit launches new AI tool to save on strata fees
Strata owners could see their body corporate fees slashed as a new AI-led platform streamlines and standardises the insurance process, resulting in more accurate valuations and lower premiums.
Strata intelligence company Cohabit has expanded its strata connectivity platform, Cohabit Connect, to strengthen risk intelligence and defect-severity assessment across its insurance team.
Cohabit said the tools were designed to address the problem of limited information about a building, including defect history and capital works, which could end up costing owners in the long run.
The company said that for owners, that information gap could come at a real cost: higher premiums, insurance coverage that does not match the building’s legal obligations, and levies that rise to absorb both.
According to Cohabit, coverage gaps or overpriced premiums often went undetected until a claim was made.
In a bid to address the issue, the platform will generate a brief covering the building’s profile, categorise defect severity, track remediation, and produce a risk summary to inform a market submission.
Additionally, the platform will generate market slips for digital submissions, reducing manual preparation time and standardising disclosure.
Cohabit Insurance CEO Thom Richards said the stronger platform would provide strata owners with greater security regarding their insurance premiums.
“Many owners have been told for years that their premium was just the cost of a building our size, and levies kept climbing to pay for it,” Richards said.
He said that by gaining a clearer picture of the building and its requirements, owners could find significant savings in their terms.
“Cutting the premium by almost three-quarters has taken real pressure off all owners' levies, and for the first time, they are confident the cover actually matches their obligations.”
Using the suite of tools, Cohabit was able to cut the annual premium for a 300-plus lot scheme by 73.6 per cent, resulting in almost $500,000 saved, which was then returned to owners through their levies.
Cohabit director of insurance Eleni Svinos said the new suite of tools was an industry first that would provide brokers with an enhanced ability to secure better terms for their clients.
“Every dollar we take off a premium is a dollar that stays with the owners,” Svinos said.
“That is ultimately what these tools are for.”
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