Steadfast Group Responds to ABC Allegations

Response to Allegations

Steadfast Group Limited has responded to allegations made in an ABC article published on 9 September 2024. The company refutes the claims and expresses disappointment over the selective presentation of information. Steadfast states that they provided the ABC with relevant information on 29 August and 4 September 2024, which was not included in the coverage.

The ABC's article raises concerns about transparency in the strata industry. However, it does not mention that Steadfast commissioned an independent review by respected insurance expert John Trowbridge in late 2021. This review aimed to identify improvements in remuneration, transparency, and disclosure practices for the benefit of customers and industry participants.

Independent Review

The final Trowbridge report was published in May 2023 and is available publicly at johntrowbridge.com.au. The reports were made available to the ABC and provided to relevant government and industry bodies. Steadfast emphasizes its commitment to a transparent and competitive marketplace that delivers the best value to customers. All of Steadfast's businesses, including brokerages and underwriting agencies, operate independently and actively compete with each other.

Specific Case Details

In response to the ABC's specific allegations regarding BCB-SCI, Steadfast provides the following details:

• As required by NSW law, an insurance broker must obtain a minimum of three quotes, which BCB did in this case.
• The SCI quote required confirmation in advance that the building had no defects, which was not required by the customer's existing insurer.
• On 28 February 2024, BCB requested that the customer confirm in writing that there were no known building defects.
• At the time of renewal presentation on 12 March 2024, there was no confirmation from the customer, so BCB did not present quotes requiring this confirmation.
• On 26 March 2024, BCB received confirmation that there were no outstanding works or defects at the property, and SCI provided an updated quote.
• On 28 March 2024, BCB held coverage with SCI, but the customer instructed BCB on 3 April 2024 to maintain coverage with their existing insurer.

Steadfast clarifies that on 12 March 2024, BCB did not present alternative terms excluding coverage for defects because the customer had not confirmed this condition could be met. Therefore, BCB provided only quote options that matched the expiring coverage, which included coverage for defects.

Commitment to Ethical Standards

Steadfast asserts that it holds itself to high professional and ethical standards and rejects any suggestion of unethical operations. The company denies improperly channeling business to its related entities. Robert Kelly, MD & CEO, reiterated that Steadfast is concerned about any case that may fall short of their standards and will investigate and rectify any shortfalls in processes and procedures if necessary.

Steadfast supports the New South Wales Government's efforts to strengthen current legislation and increase oversight over the strata industry. The company will continue to monitor developments and inform the market as appropriate.

Steadfast's equity-owned strata insurance brokers contributed approximately 5% of Group FY24 EBITA, with operating margins consistent with non-strata products.