Steadfast has told brokers the commission rate for general and products liability on its client trading platform has dropped from 26.5% to 20%.

insuranceNEWS.com.au understands this follows a similar move on the professional indemnity product.

“I assume they’ve had difficulty getting more insurers on board at 26.5%,” one broker said. “Not sure why they couldn’t try for 22.5% though.”

Steadfast said in its note the move was to ensure the platform remains sustainable.

“The adjustment will help ensure the product remains competitive and aligned with market expectations, while also enhancing our ability to introduce more insurers onto the [Steadfast Client Trading Platform] to benefit you and your clients,” it said.

CEO of Australasian broking Tim Mathieson told insuranceNEWS.com.au there will be “ongoing reviews of commissions from time to time”, but brokers are still in control of their income.

“The brokers are in a position to make sure their remuneration is aligned to the value they’re providing to the client,” he said.

“So just because the commission might fall, doesn’t mean the fee might [not] increase to offset some of that.”

Last year, insurers moved to reduce commissions on home insurance through the SCTP.