1.1 Who provides the financial services described in this FSG?
The financial services referred to in this Financial Services Guide (FSG) are provided by Emergence Insurance Pty Ltd (ABN: 46 133 037 153) (‘Emergence’). Emergence hold an Australian Financial Services Licence (No.: 329634) issued by the Australian Securities and Investments Commission (‘ASIC’) under the Corporations Act 2001 (Cth).
All references in this FSG to ‘we’, ‘us’ or ‘our’ are references to Emergence unless specified otherwise.
1.2 How do you contact us?
You can contact us as follows:
Street Address: Emergence Insurance Pty Ltd,
Level 4, 99 Bathurst Street,
Sydney NSW 2000
Postal Address: Level 4, 99 Bathurst Street,
Sydney NSW 2000
Phone: 02 8280 3000
1.3 The purpose of this FSG
This FSG sets out the services that we can offer you. It is designed to assist you in deciding whether to use any of those services and contains important information about the services; how we and others are paid; any potential conflict of interest we may have; our internal and external dispute resolution procedures and how you can access them; and arrangements that are in place to compensate clients for losses.
This FSG is an important document. Please read it carefully and keep it in a safe place for your reference and for any future dealings with us.
1.4 Who is responsible for the financial services provided?
Emergence is responsible for the financial services provided to you. Emergence is also responsible for the content and distribution of this FSG.
We have given authority to your insurance broker to release this FSG on our behalf. Any financial services provided in accordance with this FSG will only relate to products arranged by us.
1.5 From when does this FSG apply?
This FSG applies from 4 August 2020 and remains valid unless replaced by a subsequently issued FSG.
1.6 What services can we provide?
We are authorised to deal in and provide financial advice in relation to general insurance products for retail and wholesale clients.
To assist in your decision making, we will give you information about the insurance product by providing you with a Product Disclosure Statement (‘PDS’). The PDS is an important document. You should carefully read the PDS to decide if the product features suit your objectives, financial situation and needs before making a decision about the insurance product. Please keep the PDS in a safe place for your reference and for any future dealings with us.
In some cases, we may make a general recommendation or give an opinion about the insurance products (‘General Advice’). We do this without consideration of your specific individual objectives, financial situation or needs. This is a General Advice service. We do not provide any advice on whether other products may be more appropriate for your needs or which of the product options may be best for you.
You need to consider the appropriateness of any information or General Advice we give you, having regard to your specific individual objectives, financial situation or needs before acting on it.
1.7 Product Disclosure Statement
If we offer to arrange the issue of an insurance policy to you, we will also provide you with, or pass on to you, a PDS, unless you already have an up to date PDS. The PDS will contain information about the particular policy, which will enable you to make an informed decision about purchasing that policy.
1.8 Who do we act for?
When we provide financial services to you, we will not be acting on your behalf. This is because we are an underwriting agency. When we distribute insurance products, we are acting under a binding authority given to us by the insurer who underwrites the insurance cover. This binding authority allows us to accept your application for insurance as if we were the insurer. This means that we represent and act for the insurer and not for you.
Your insurance broker acts for you and will deal with us on your behalf.
1.9 How can you instruct us?
You can contact us to give instructions by post, phone or email on the contact number or details mentioned on page 1 of this FSG.
1.10 General Insurance Code of Practice
We support the General Insurance Code of Practice (‘the Code’). The Code is designed to raise the standard of practice and service in the general insurance industry.
For further information about the Code, please go to www.codeofpractice.com.au or contact us.
1.11 What information do we maintain in your file and how can you access it?
If you apply for one of our insurance products, we will collect information from you for the purpose of us deciding whether to arrange insurance for you, and if so, on what terms. If we agree to issue the relevant insurance, we will use the information to manage rights and obligations under the insurance product.
Our privacy officer can be contacted on +61 2 9307 6656 or by writing to the privacy officer at:
Postal Address: PO Box A2016, Sydney South NSW 1235
We will retain this FSG and any other FSG given to you as well as any PDS that we give or pass onto you for the period required by law.
1.12 How we are paid for our services
How will you pay for the services provided?
When we issue you with an insurance product, we charge a premium, on behalf of the insurer, based on the risk profile you have provided. The total amount you pay is the premium plus any relevant taxes, charges and levies.
When you pay your premium to us (via your insurance broker), it will be banked into our trust account prior to being remitted to the insurer’s trust account, net of any commission (see below) payable to us. We will retain the commission from the premium you pay us and remit the balance to the insurer in accordance with our arrangements with the insurer.
All collected premium, plus any relevant taxes, charges and levies, are held in our trust account in accordance with statutory provisions.
You can choose to pay the premium by any of the payment methods set out in your insurance schedule and tax invoice. You are required to pay us, on behalf of the insurer, within the timeframe set out in the insurance schedule and tax invoice.
We receive income from the following sources:
Interest on premium held in trust
We will earn interest on the premium while it is in our trust account and earn a return. We will retain any interest earned on the premium.
We receive a commission which is calculated as a percentage of the premium.
The commission is paid at a rate of 39%. From that, retail brokers receive a commission on each policy, capped at a maximum of 25% of base premium, and reinsurance brokers, who handle our transactions and placements with the insurer, receive 3%. We pay a further 1.5% in connection with our arrangement with SGL (see below) and earn the remainder as net commission. Our net commission supports product research and development, underwriting, marketing, design and maintenance of our IT transaction platform and websites, staff training and development, broker education and general administrative, overhead and other expenses. The commission is included in the total amount you pay for the insurance policy and is not in addition to the insurance policy.
The commission applies to each policy issued or renewed through us. The commission may not be refundable in the event of cancellation unless the insurance policy is cancelled either within the cooling-off period or is a full term cancellation.
See below for information on our association with Steadfast Group Ltd.
Emergence has potential to earn a profit share commission based upon performance of the book of business. Due to the contingent nature of insurance and the way the arrangement is set up, it is not possible to know the exact amount, if any, to which we may be entitled until the end of the qualifying period.
In some circumstances, we may charge you a Policy Fee that ranges from $11 up to $110 inclusive of GST. The Policy Fee, as applicable, is noted on your insurance schedule and tax invoice. We can tell you the exact fee at the time you contact us (via your insurance broker). Such fees include meeting our costs of preparation and distribution of documentation.
The Policy Fee applies to each policy issued or renewed through us.
The Policy Fee is not refundable in the event of cancellation unless the insurance policy is cancelled either within the cooling-off period or is a full term cancellation.
We do not charge a fee for cancellation of the insurance policy.
You may cancel your insurance policy at any time. If you choose to cancel your insurance policy, we will retain a portion of the premium that relates to the period for which you have been insured. We will refund the residual for the unexpired period less any non-refundable taxes, charges and levies provided that no event has occurred where liability arises under the insurance policy.
Remuneration of employees
Our employees that will assist you with your insurance needs will be paid a market salary and may earn a cash bonus or other incentives based on achievement of a broad range of our goals, including financial targets.
You may request particulars of our remuneration (including commission) or other benefits, including, to the extent relevant, a statement of the range of amounts or rates within a reasonable time following receipt of this FSG and before we provide any financial service to you.
We are a partly owned subsidiary of Steadfast Group Ltd (ABN: 98 073 659 677) (‘SGL’).
We have access to shared services from SGL, including compliance tools, manuals and training as well as legal, banking and group purchasing arrangements. These services are funded by SGL, subsidised by SGL or SGL receives a fee for them.
SGL has arrangements with the insurer, as with some other insurers, under which SGL may receive between 0.5% – 1.5% commission of the base premium paid (excluding government charges) for some products arranged by us with the insurer of this product. SGL may share part of that commission with us. SGL’s FSG is available at www.steadfast.com.au or on request by telephoning SGL’s Company Secretary on +61 2 9495 6500.
1.14 Conflicts of interest
We take any potential and actual conflicts of interest seriously and have a conflict of interest policy. Conflicts of interest are circumstances where some or all of your interests are or may be inconsistent with or diverge from some or all of our interests.
We manage conflicts of interest through adequate controls, disclosure and avoidance. We also provide training to our employees to identify conflicts of interest and encourage the early reporting of potential conflicts of interest.
1.15 What is your duty of disclosure obligation?
In accordance with the Insurance Contracts Act 1984 (Cth) you have a duty of disclosure. For the full wording of your duty of disclosure, please refer to the PDS.
1.16 What arrangements do we have in place to compensate clients for losses?
We have a professional indemnity insurance policy (PI policy) in place which satisfies the requirements for compensation under section 912B of the Corporations Act 2001 (Cth).
The PI policy covers us for claims made against us as a result of our conduct or conduct by our employees (or former employees) in the provision of financial services.
1.17 What should you do if you have a complaint?
If you make a complaint regarding our services, we will do everything we can to try to resolve it as quickly and as fairly as possible.
You can make a complaint by contacting us as follows:
By phone: +61 2 8280 3000
By email: firstname.lastname@example.org
In writing to: Emergence Complaints, PO Box A2016 Sydney South NSW 1235
If we do not resolve your complaint to your satisfaction, the complaint will be handled by our or the insurer’s internal panel.
If it is to be handled by us, we will respond in writing within fifteen (15) business days of the date you advise that you wish to proceed to Stage 2, provided all the necessary information has been provided and any investigation required has been completed.
If we are unable to resolve your complaint within forty-five (45) business days of the date we first received your complaint or if your complaint has not been resolved to your satisfaction, you can lodge your complaint with the Australian Financial Complaints Authority (‘AFCA’) depending on eligibility related to your policy. AFCA provides fair and independent financial services complaint resolution that is free to consumers.
You can contact AFCA directly and they will advise if your complaint falls within the AFCA Rules. You can contact AFCA:
By visiting: www.afca.org.au
By email: email@example.com
By phone: 1800 931 678 (free call)
In writing to: Australian Financial Complaints Authority, GPO Box 3,
Melbourne VIC 3001
For our full complaints process please go to www.emergenceinsurance.com.au or contact us to request a copy to be sent to you.
1.18 More information
If you would like more information about us, please contact us by phone, in writing by email or in person.
This FSG was prepared on 29 July 2020
© Emergence Insurance Pty Ltd 2020