Broker network Steadfast Group suspends trading

Steadfast Group , Australia’s largest general insurance broker network and underwriter, is suspending trading on the Australian Stock Exchange following allegations that the company misled its clients.

The ABC reported that undisclosed financial arrangements between insurance companies, brokers, and strata managers were allegedly inflating insurance costs for property owners. One claim involved a Steadfast-owned broker recommending a more expensive policy from a Steadfast-owned firm while hiding a cheaper competitor’s quote.

In response to these allegations, the chair of the Australian Competition and Consumer Commission called for a ban on paid commissions for strata insurance, citing hidden payments that mislead consumers. Steadfast has denied the allegations and requested a trading halt until a statement is made or trading resumes.