How do I utilize the partner services of Challenge Insurance for my insurance policy?

You are welcome to contact any of the service providers directly. The intention of our partner services is to provide Challenge Insurance Service clients with a complete suite of insurance related services – a one stop shop for all risk management activity. We advocate these services to all of our clients and encourage you to review the various offers and make contact for more information. We advise there is strictly no financial incentive paid to Challenge Insurance Service for your use of these partners.

Can I change my policy mid-term?

Yes. If you have a need to transfer either your appointed broker or your insurer there is a simple process to follow which can enable this. As a broker, we can facilitate the entire transfer without any input required from you, other than the collection of your policy information and your authorization to make such change, If you refer to our ‘documents’ tab, in particular ‘Letter of appointment’ by clicking on the link below you will see the document we require to transact the change.(whereby you are not currently a client of Challenge Insurance Services).
It is important to note that stamp duty will be returned pro-rata, along with the unused portion of your premium (pending the terms and conditions of your policy), Challenge welcome any enquiry you have on the subject and can assist with policy and broker transfer at your request.

What rules are brokers governed by?

Brokers are required to hold a Financial Services License to trade. Given this, our actions are bound by a number of statutory Acts which work to both govern the general insurance industry and provide the necessary regulatory frame work . The Insurance Contracts Act and the Financial Services Reform Act are two such Acts. In addition to this all information we collect for the purpose of insurance placement is bound by the Privacy Act. General Insurance brokers are required to maintain a level of professional development per annum and must meet the professional development hours annually. Additionally, brokers must be qualified to provide advice relative to general insurance products and hold, at minimum, Tier 1 or 2 in PS146 ( licensing under the Australian Securities Investments Commission) at Challenge insurance Services all staff have further professional development and hold a diploma in Insurance Broking – ensuring we are more than qualified to effectively advise on your needs.

What are the advantages to using a broker?

Insurance brokers are licensed financial services advisors who utilize their knowledge of insurance markets to arrange and advise on policy placement to benefit your business.
Insurance brokers have access to the greater insurance market which a retail buyer simply cannot access. Only a limited number of Insurers in Australia are licensed to deal direct to the consumer, and of these only a select few will offer the full suite of products you and your business may require.
An insurance broker has the in depth market knowledge and qualification to analyze the various policies available, advise on the suitability of such products in comparison to your needs and subsequently arrange placement of the policy on your behalf. A broker also has the benefit of being independent of any one insurance company yet still has the aggregated buying power with Insurers which flows through to your individual transaction.

Who does the broker work for?

An insurance broker is engaged by you to represent your interests. A general insurance broker does not have any relationship with the insurer other than as a representative of you and your business. At all times the broker will act in your best interests and is your advocate on all insurance matters from negotiation of terms and conditions through to claims negotiation and settlement, in short – the broker is employed by you and works for you.

Does a broker cost me more to use?

As a general rule, no. Insurance brokers are remunerated in part by the insurer via commission and in part by you via our broker fee. While we may be paid commission by the insurer, this is a portion of the insurer’s earnings which are sacrificed to remunerate the broker for their services in policy placement and not added to the regular premium value to offset the insurers loss of earnings. Given that a broker has greater access to a larger insurance market, generally the broker fee applied is offset against the overall saving of our aggregated buying power and market knowledge. This is without taking into consideration time cost to you in the event of a claim and professional advice received as part of the broker service proposition, both of which are not available in a direct consumer to insurer transaction.

What other fees and charges will I incur through the year for my policy management?

Little to none. We do not charge for additional advice if required through the policy period, nor for claims handling assistance or preparation. We also provide a free contract review service for our clients, potentially saving thousands in legal fees and ensuring policy compliance with contracts presented to you.
If an amendment is required to the policy we do charge a small administration fee, covering our transaction cost only (average $22 per transaction).

Can I place this insurance directly with an insurer myself?

Depending on the policy type and your business activity. Generally speaking there is a limited panel of insurers who will transact business insurance products direct to the retail consumer (you ). What is important to remember though is these insurers are licensed to provide general advice only. They are not able to neither take your specific financial needs into account nor provide comparison between similar policy types and advocate which is more suitable for you. That insurer can only distribute their own policy so caution should be taken to ensure it meets your needs. A thorough understanding of that insurer’s terms and conditions should also be known and it is important you declare all required information to comply with that insurers disclosure requirements. It is important that you understand there is no recourse for you if you get this wrong. In comparison, brokers are suitably qualified and licensed to provide specific advice and it is our role to compare available products to determine their suitability to your insurance needs. We also have a greater market to operate in with approximately 152 registered insurance agencies in Australia at present. In addition to this we also hold Professional Indemnity insurance to $100,000,000 – if we make a mistake in the placement of your cover, you have a means to pursue recovery of your loss where we are at fault, giving you additional peace of mind.

What happens at the expiry of the policy?

If you have transacted a policy with a broker, as your appointed insurance representative we have the right to renew your policy prior to expiry. We have an obligation to ensure that there is no period where a potential gap in cover may exist, and furthermore we have strict regulation in place under the Insurance Contracts Act whereby we must ensure a policy is renewed and you are advised of such renewal a minimum of 14 days prior to expiry. At Challenge Insurance Services we maintain communication with you through this process and send correspondence to ensure that we have adequate and up-to-date policy data to enable us to re-broker the policy prior to renewal to ensure you maintain the single most competitive arrangement for each policy held with our company.