This Financial Services Guide (FSG) explains:
- our products and services;
- our remuneration;
- any potential conflicts of interest we may have; and other
- other important information.
Please take the time to carefully read this FSG and keep it safely with your policy documents.
We aim to provide you with insurance products and services that protect you and/or your business. To help us achieve this, it’s important that you understand what we do as your insurance broker.
Our FSG contains important information about the products and services Tag Insurance Brokers Pty Ltd (TAG) offers. It also explains how we,may be remunerated and contains details of our internal and external complaints handling procedures.
If you are buying a Retail Product (as defined in the Corporations Act 2001 (CTH), we will, if and when required, also give you a Product Disclosure Statement (PDS). The PDS contains information from the product issuer about the product and its features to assist you in making an informed decision about whether or not to buy it.
If we give your personal advice about a Retail Product, which takes into account your individual objectives, financial situations or needs, we will, if required, also give you a Statement of Advice (SOA).
This contains the advice we have given, the basis of that advice and other information about our remuneration and any relevant associations or interests which may have influenced the advice provided.
Please tell us if you think we can improve in any way and do not hesitate to contact us with any questions that you have.
Our products and services
As your insurance broker, we are licensed to deal in and provide advice in relation to general insurance products.
Under our licence, amongst other things, we are able to:
- arrange general insurance products to help you protect against insurable risks;
- collect information that insurers require from you;
- where needed, provide you with information and advice about general insurance products; and
- where needed, assist you to make insurance claims.
Arranging your insurances
Whilst cost is always important, the quality of insurance cover offered by a policy is equally important. Insurance that does not match your needs is worthless, however cheap premium.
In order to arrange your insurance, we rely on you to provide accurate and complete information. We also rely on you to carefully review all documents we give you (including policies and endorsements) containing the terms of your cover (including applicable limits, sub-limits, deductibles and your obligations) to ensure that the
cover suits your needs and so that you comply with your obligations under your policies.
Failure to do this may result in uninsured losses. Please advise us immediately if you notice any mistakes of fact or believe the contents do not address your needs.
Under the Corporations Act 2001 Retail Clients are provided with additional protection from other clients.
The Act defines Retail Clients as:
- Individuals or a manufacturing business employing less than 100 people or any other business employing less than 20 people and that are purchasing the following types of insurance covers:
- Motor Vehicle (under 2 Tonne)
- Home building, contents, personal & domestic property
- Sickness and Accident or Travel
- Consumer Credit and other classes as prescribed by regulations
Who do we act for?
As your insurance broker we act for you in providing our insurance services. We will tell you before or at the time of purchase if we are not acting for you in providing any part of our service. We will inform you if we act for an insurer in this way.
Unless we have agreed in writing otherwise, our remuneration will comprise the following:
- a commission paid to us by the insurer;
- a fee which will be agreed with you beforehand; or
- a combination of commission and fee.
A commission paid to us by an insurer is standard for insurance brokers and our rates of commission typically range from 5% to 22% of the premium (before taxes and statutory charges) depending on the type of insurance.
In addition, we may also receive the following:
- a broker service charge for policy invoicing, premium collection and remittance, for issuing policies and other insurance administration work. This charge will appear on your invoice and will vary depending on the work involved and the commission we receive;
- in some cases, you may need specific risk advice (such as a business interruption analysis or a valuation). We will charge a separate fee for these services, which we will agree with you beforehand;
- in some cases, an insurer may quote its premium net of our commission. Where this happens, we may increase the broker service chargeby the amount of commission that would normally apply to this type of insurance or agree to a specific fee with you;
- where we provide you with a SOA in relation to a Retail General Product, we will advise you of the full amount of our remuneration inrelation to that Retail General Insurance Product; and
- we may charge an additional administration fee for any change to the policy that requires us to produce a further statement or invoice or a certificate of currency. We may deduct and retain this fee from any premium refund due to you from the insurer, arising in connection with the policy change.
Please note that we treat our remuneration as fully earned when we issue you with a tax invoice, unless we have a written agreement with youthat varies this statement.
You agree that we may retain all our commission, fees and other remuneration in full in the event of any mid-term cancellation of a policy or future downward adjustment of premium. However, where you cancel your insurance policy under a statutory cooling-off entitlement, we will refund to you any part of our remuneration already paid to us for that policy at the date of cancellation.
You also agree that the insurer and TAG may offset such remuneration from any premium refund you are entitled to.
A surcharge may apply to all credit card payments.
The nominated surcharge will be displayed on your invoice.
Do we receive any other remuneration for our service?
The law requires us to pay your premiums (and certain moneys paid to us by insurers for your account) into a trust account pending payment to the insurer. We are entitled to earn and retain interest on these monies to cover the cost of providing these transactional services.
Our standard credit terms for premium payments are 21 days from the date of our invoice unless our agreement with you or our tax invoice to you specifies another date. We pay insurers within the period dictated by the law or earlier if the insurer requires.
We may offer to arrange premium funding to help spread the cost of your insurance premiums over the year.
Please note that TAG offers and arranges premium funding for the premium funder and not as your credit provider or finance broker. TAG may also act as the premium funder’s agent in cancelling any insurance where you have failed to meet your repayment obligations.
The details of your premium funding arrangement will be set out in your separate contract with the premium funder.
We may also receive a commission from the premium funder, the commission rate for the premium funding are in the range of 0 – 2% of the funded premium.
Should your funded insurance policy be cancelled mid-term, for any reason, you should be aware that there may be a shortfall between the balance of the amount payable under the premium funding contract and the return premium as:
- the premium funder may be entitled to charge interest for up to the full term of the loan period under the terms of the funding contract;
- there will be no pro rata refund of our commission or fee as our remuneration is fully earned when we issue you with a tax invoice, unless we have a written agreement with you to the contrary
TAG and its staff may also receive non–monetary benefits from insurers such as, client functions, meals and entertainment. TAG has, and monitors compliance with, a policy that ensures that these do not create a conflict with your interests.
What Do We Do with Our Remuneration?
A large part of the remuneration we receive pays all business operating costs, market research, technology, training, education, salaries and wages of our staff.
Conflicts of Interest
Conflicts of interest may arise in circumstances where some or all of your interests as our client are, or may be, inconsistent with some or all of ourinterests.
We have a conflicts of interest policy and procedure, including training and monitoring, to ensure we are aware of and manage any conflicts of interest. Our company, staff and our representatives must comply with this policy and procedure.
Where a conflict is unavoidable, we will consult with you and manage the conflict in such a way as to avoid prejudice to any party.
Professional Indemnity Insurance
In accordance with the requirements of the Corporations Act 2001 (CTH), TAG maintains adequate Professional Indemnity Insurance. This insurance cover extends to claims in relation to our conduct as an Australian Financial Services Licence holder and our employees and representatives both past and present, to compensate clients or their beneficiaries for loss or damage suffered if we provide negligent advice.
Premium and Invoice Calculations
We adopt industry practice in calculating local statutory charges.
All amounts referred to in our invoices, unless stated otherwise, are to be treated as exclusive of GST. Where the invoice is for a foreign currency amount, any applicable GST is converted to Australian dollars at the exchange rate published by the Reserve Bank of Australia at 4pm on the business day prior to the date of the invoice.
We make every effort to correctly determine the premium and statutory charges that apply to your insurance, however, occasionally, errors canoccur. We may correct any such error and (except to the extent prohibited by law) we will not be responsible for any loss you suffer as a result of the error or its correction.
We value the privacy of personal information and are bound by the Privacy Act 1988 (CTH) when we collect, use, disclose or handle personal information to offer, provide, manage and administer the many financial services and products we and our group of companies are involved in (including those outlined in this FSG).
Collection and Use of Client information
TAG gathers data containing information about its clients and their insurance placements, including, but not limited to: names, industry codes, policy types, and policy expiration dates, as well as information about the insurance companies that provide coverage to its clients or compete for its clients’ insurance placements.
This information is maintained in one or more databases. TAG may use or disclose information about its clients, if it is required to do so by Australian law, TAG policy, pursuant to legal process or in response to a request from Australian law enforcement authorities or other government officials.
Insurance Brokers Code of Practice
TAG follows the Insurance Brokers Code of Practice. The Code sets out standards for brokers to follow when dealing with clients, including requirements to inform clients of remuneration arrangements and any conflict of interest.
Service Issues and Complaints
We are committed to providing quality services to our clients. This commitment extends to giving you easy access to people and processes that can resolve a service issue or complaint.
If you have a complaint about the service, we have provided to you, please address your enquiry or complaint to the staff member providing theservice, or phone (03) 9555-0544 during normal office hours.
If we are not able to resolve the issue immediately, or within five business days, we will refer it to the Complaints Officer, who will review the complaint and advise you in writing of the expected time for resolution.
You can also refer your service enquiry or complaint to the Complaints Officer at any time by email to firstname.lastname@example.org
TAG’s Complaints Officer will identify actions to remedy the complaint where possible and endeavor to provide you with a decision within 21 business days of the date of notification of your complaint.
If your complaint is complex and may take longer than 21 business days to resolve, we will advise you of the expected timeframe required to address your complaint and will keep you informed of its progress.
If you are dissatisfied with TAG’s final response to your complaint, you may be able to refer your complaint to the Australian Financial Complaints Authority (AFCA).
AFCA is an independent external dispute resolution scheme approved by the Australian Securities and Investments Commission (ASIC) and its services are free to you. We are a member of this scheme and we agree to be bound by its determinations about a dispute.
Please note that before AFCA can investigate your complaint, they do require you to have first provided us with the opportunity to address thecomplaint.
Further details regarding AFCA can be obtained from their website (www.afca.org.au), or alternatively you can contact AFCA as follows:
Phone: 1800 931 678 (free call) Email: email@example.com
Mail: Australian Financial Complaints Authority GPO Box 3, Melbourne VIC 3001