The hardening insurance market has “at least a couple of years” to run, Steadfast CEO Robert Kelly says, after the group benefitted from an average premium rise of about 5% in the first half.

He says the price recovery is in its early stages and the impact of the Sydney hailstorms and Townsville flooding is likely to reinforce the trend.

“It will reaffirm that the industry has to keep going with its price increases,” he told insuranceNEWS.com.au.

In previous results briefings Steadfast has published an insurance market “clock”, on which midnight is the tipping point from a hardening to a softening market.

“I still think we haven’t got anywhere near the 12 o’clock mark at this stage,” Mr Kelly said.

Steadfast last week announced a 19.8% rise in first-half net profit to $40.5 million and said it is on track to meet its full-year earnings guidance.

Gross written premium (GWP) from Steadfast Network and equity brokers grew 12% to $2.9 billion, while underwriting agencies GWP jumped 24% to $558 million.

Eleven brokers joined the network in the half, taking the total to 388. Organic growth was supported by revenue from business packs, industrial special risk, professional risk, motor lines and liability.

“We continue to invest in technology, particularly the Steadfast Client Trading Platform, to create a genuinely contestable marketplace where insurers compete for business,” Mr Kelly said.

The platform, combined with policy wordings, non-volume-based commissions and non-variable commission terms, lets Steadfast brokers offer strong outcomes to clients, he says.

Steadfast has announced Mr Kelly will continue as CEO until the end of 2022, in line with the conclusion of a proposed review of financial advice and broker commissions. The review, to start in three years, was one of 76 recommendations from the Hayne royal commission.