The latest Marsh commercial index shows the composite rate falling 8% in the region and actuarial group Finity says “we are well and truly in a soft market” – but Steadfast CEO Robert Kelly does not agree.

Mr Kelly says, on the business Steadfast places, premiums are for the most part still increasing, although the rises are moderating.

“There’s nearly $800 million worth of business pack on the Steadfast Client Trading Platform,” he told insuranceNEWS.com.au.

“For calendar year 2024, 73% of it was renewed at a higher price. Nearly 10% rolled over from the price before. 

“If that’s a soft market, I think you should start re-looking at what a soft market is.”

Mr Kelly says the Marsh index includes the large corporate sector, which has very different drivers to the SME segment.

“If you want to get a real figure about consumers, you take out the large commercial, and you start to look at the real meat where a lot of the claims are, and the areas where risk has to be insured regardless.

“Up in the big area, if the risk is difficult to insure, then the commercial client may take a $5 million deductible in order to get it insured. You can’t compare that.

“I always look at our own statistics – not what other people tell us about the market.”

Mr Kelly concedes “there is movement”, and some lines including cyber are soft. But he says overall, Steadfast brokers are not operating in a soft market.

“I’d say it’s moderating. But I can tell you, most of the Australian insurers are trying to drive rate because they are trying to get their [combined operating ratios] down to the very low 90s, where they may make some profit.

“And it would be a very funny industry if people put billions of capital out and didn’t make any money on it.”