Steadfast will give further consideration to broker commission levels on home insurance as many residents struggle with rising costs.

CEO Robert Kelly says recent insurer premium increases were “appropriate and justified”, but commissions may be adding to affordability concerns.

“If [the pressure on consumers] is being extended because of the high commission on householders, then the industry needs to address that,” he said.

“Do I think the commission structure on home insurance allows for brokers to give competitive pricing? No, I don’t think it does.  

“Because if you’re building a product line, and you’ve got to build in a 20% commission, and then the direct underwriters build in maybe between 8% and 11% costs to sell a product line, then you’re competing against that level.”

Mr Kelly says Steadfast has reduced commissions on home but does not rule out further moves.

“We brought our commission back in some cases to 15%. Whether that is low enough or not, I don’t know at this stage.”

He says that despite cost pressures, consumers are increasingly turning to brokers in personal lines.

“In 1999, about 4% of our business was individual house and car. In 2024, it was past 15%. So consumers are coming more towards brokers to get advice about home insurance, basically because it is complex and also risks are quite difficult to place in some areas.”

Mr Kelly says transparency of remuneration is critical for retail customers, and he retains a belief that very small businesses should be treated as retail – an issue that will be considered in the ongoing review of the National Insurance Brokers of Australia code.

“I think that insurance brokers are going to get one chance to convince the consumers of Australia that they’re on their side, and that’s by adopting a transparent code.

“NIBA is trying to listen to the roar of the public and say, ‘What does the consumer want?’ The survey that is being conducted by NIBA will give it a position on what its constituents feel about that.”