Steadfast Group has released a statement rejecting allegations featured in the ABC’s Four Corners investigation into the strata industry.

As insuranceNEWS.com.au has reported, the listed broking and underwriting giant entered a trading halt in response to an ABC article published online yesterday morning. The Four Corners show then aired at 8.30pm yesterday.

The ABC’s coverage paints a picture of Steadfast as a dominant player that uses its interests across different parts of the insurance process to profit at the expense of customers.

It alleges Steadfast intermediaries have directed clients to more expensive options to put business the way of Steadfast-owned underwriters and premium funders. These specific allegations were strongly denied by Steadfast CEO Robert Kelly on the show.

While the program addressed other strata-related issues, the section on insurance was almost entirely focused on Steadfast.

The company’s statement to the Australian Securities Exchange says it “refutes the allegations made” and is “disappointed that important information has been selectively presented”.

“[The ABC’s] coverage to date makes no mention of the fact that Steadfast commissioned respected insurance expert John Trowbridge to conduct an independent review in late 2021,” it says. 

“This review was commissioned to help identify how remuneration, transparency and disclosure practices can be improved for the benefit of customers and industry participants.”

As insuranceNEWS.com.au has reported, Mr Trowbridge’s review highlighted many of the issues addressed by the program, and called for “opaque” remuneration structures to be phased out.

He said yesterday that he stands by his report and confirmed “conflicts of interest” are not confined to Steadfast but are industry-wide.

“There is an emphasis on Steadfast in the ABC article – but the irony is that Robert Kelly knew there were problems and that’s why I was commissioned to do the work,” Mr Trowbridge said.

Steadfast says it is “fully committed to a transparent and competitive marketplace that delivers the best value to customers.

“Steadfast holds itself to high professional and ethical standards. We reject any suggestion that our businesses operate unethically and, in particular, that Steadfast improperly channels any business to its related entities.”

It says it supports the NSW government’s recent strengthening of strata legislation.

“Steadfast is naturally concerned about any case that may fall short of our standards and expectations,” Mr Kelly said.

“Should instances be raised that require further action, we will of course investigate and act to rectify any shortfalls in our processes and procedures.”

Steadfast says its equity-owned strata insurance brokers contribute about 5% of group earnings, with operating margins consistent with non-strata products.

The Four Corners program can be watched here.