Steadfast brokers have embraced the group’s new direct personal lines service, putting about $2 million in premium through the facility so far.

MD and CEO Robert Kelly says Steadfast Direct has been open to all network brokers for about two weeks only, and more than $1 million in premium has since been processed.

“They’re picking it up with great gusto,” he told insuranceNEWS.com.au. “Even some of the larger brokers are having a go. There’s a lot of enthusiasm around it.”

Mr Kelly says the facility was opened on a very limited basis for 10 weeks while fine-tuning took place, and the “four or five” brokers involved in the pilot program processed about $1 million in premium.

Some 60% of the business is from existing brokers, while the rest is new business.

The facility is underwritten by IAG, which insuranceNEWS.com.au previously reported. See earlier story.

The insurer offered to underwrite the diversified broker group’s personal lines business after Berkshire Hathaway withdrew from the arrangement. 

Mr Kelly confirmed IAG has provided $900 million, involving a different ratings allocation and ratings mechanism from its other direct personal lines operations.

He says IAG “is happy to regard us as a challenger brand”.

Personal lines premiums are continuing to drop, and Mr Kelly says the latest Australian Prudential Regulation Authority statistics “show loss ratios on house insurance are in the 40s, so the pricing mechanisms of some insurers are still too fat. IAG itself dropped 20% off the book price when we launched.”