This can be downloaded in Adobe PDF format here.

The financial services referred to in this Financial Services Guide (FSG) are offered by Honan Insurance Group Pty Ltd (“HIG”, “We”, “Us”, “Our”) ABN: 67 005 372 396, AFSL: 246749.

This FSG sets out the services that HIG 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 we offer you
  • 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
  • Arrangements we have in place to compensate clients for losses

Further information when personal advice is given

When you ask us to recommend an insurance policy for you, we will usually be providing general advice where we only consider the policies offered by the insurers or insurance providers that we deal with regularly. In giving you advice about the costs and terms of recommended polices we have not compared those policies to other policies available, other than from those insurers we deal with regularly.

If we provide you with tailored personal advice, which takes into account your objectives, financial situation and needs, we will provide you with further information. This information may include the advice that we have given you, the basis of the advice and other information on our remuneration and any relevant associations or interests. This information may be contained in a Statement of Advice (SOA).

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 product disclosure statement (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.

From when does this FSG apply?

This FSG applies from 23/02/2015 and remains valid unless a further FSG is issued to replace it. We may give you a supplementary FSG. It will not replace this FSG but will cover services not covered by this FSG.

How can I instruct you?

Instructions for coverage to be bound or any request of additions, deletions or changes, must be made directly to a licensed broker and followed up in writing by email, fax or post. It is important for you to ensure that the policy you have requested us to provide you does contain the correct details of your circumstance.

Cooling off period

A cooling off period may apply to an insurance policy issued to you as a retail client, however, only if the policy has a qualifying cooling off period and only during this period may you return the policy for a full refund. Details of your cooling off rights will be included in the relevant PDS.

Who is responsible for the financial services provided?

HIG holds a current Australian Financial Services Licence (Licence No: 246749). The contact details for HIG are on the front of this FSG.

What kinds of financial services are you author

ised to provide to me and what kinds of financial product/s do those services relate to?
HIG is authorised to advise and deal in general insurance products to retail and wholesale clients. We will do this for you as your broker unless we tell you otherwise.

From time to time, we will be acting under a binding authority with an insurer which allows us to arrange, bind and issue insurance policies on their behalf. When we act under a binder or agency we will be acting as the agent of the insurer. This means that we represent and act for the insurer, not for you. This FSG will tell you when we act under a binder or agency to arrange your insurance or advise you about your insurance needs in the section detailing our relationships with insurers below.

Will I receive tailored advice?

Not in all cases. However, we may need information about your personal objectives, details of your current financial situation and any relevant information, so that we can arrange insurance policies for you, issue insurance policies to you or to give you advice about your insurance needs. We will ask you for the details that we need to know.

In some cases we will not ask for any of this information. If we do not ask, or if you do not give us all of the information we ask for, any advice you receive may not be appropriate to your needs, objectives and financial situation.

You should carefully read the warnings contained in any SOA, or any other warnings that we give you, before making any decision about an insurance policy.

What if your circumstances change?

You must notify us of any changes to your situation that may affect the cover under your insurance policy or the services to be provided by us. We may need to discuss with you the appropriateness of the insurance placed for your changed circumstances to ensure it remains suitable for your situation. The endorsing of your insurance policy may involve additional premium upon which we will notify you by sending you an invoice with the premium breakdown.

What information do you maintain in my file and can I examine my file?

HIG value the privacy of personal information and is committed to the protection of your privacy. HIG is bound by the Privacy Act 1988 when we collect, use, disclose or handle personal information. We collect personal and/or business information in order to provide our various services to you such as insurance broking, claims management and risk management consultancy. If you do not provide the requested personal information we may not be able to evaluate, effect, manage or administer your policy and you may also be in breach of your duty of disclosure.

We disclose both personal and business information to third parties who are involved in the provision of our services or related entities to HIG. In addition we may also provide information to the extent required by law or regulatory requirements.

We are committed to enforcing our privacy policy, which will ensure the privacy and security of your personal information. A copy of our privacy policy is available on request. A copy is also available on HIG’s website, www.honan.com.au. If you wish to look at your file please ask us. We will make arrangements for you to do so.

Insurance Brokers Code of Practice

We are a member of the National Insurance Brokers Association (“NIBA”) and are bound by their Code of Practice (“the Code”).

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.

The Code is available from the NIBA website www.niba.com.au

How will I pay for the services provided?

For each insurance product the insurer will charge a premium that includes any relevant taxes, charges and levies. We often receive a payment based on a percentage of this premium (excluding relevant taxes, charges and levies) called commission, which is paid to us by the insurers. However, we will also charge you a fee that covers the broking service we provide and or the administration provided on the servicing of your policy. You can choose to pay by any of the payment methods set out on the invoice. You are required to pay us within the time set out on the invoice.

When you pay us your premium it will be banked into our trust account. We retain the commission from the premium you pay us and remit the balance to the insurer in accordance with our arrangements with the insurer. We will earn interest on the premium while it is in our trust account or we may invest the premium and earn a return. We will retain any interest or return on investment earned on the premium.


If there is a refund of premium owed to you as a result of a cancellation or alteration to a policy, the premium and government charges will be calculated and refunded on a pro rata basis. Any fee and/or commission charged/earned by HIG are non refundable.

How are any commissions, fees or other benefits calculated for providing the financial services?

Our commission will be calculated based on the following formula:
X = Y% x P
In this formula:
X = our commission
Y% = the percentage commission paid to us by the insurer. Our commission varies between 0 and 30%.
P = the amount you pay for any insurance policy (less any government fees or charges included in that amount).

Any fees that we charge you will be based upon our standard non refundable broker fees. All fees payable for our services will be advised to you at the time of providing the advice or service.

We may pay commissions, fees or benefits to others who refer you to us or refer us to an insurer. If we do, we will pay commissions, referral payments or benefits to those people out of our commission and or fees.

Our employees that will assist you with your insurance needs will be paid a market salary and may receive a bonus based upon the overall performance of the business.

If we give you personal advice, we will inform you of any fees, commission or other payments we, our associates or anyone referring you to us (or us to any insurer) will receive in relation to the policies that are the subject of the advice.

If we arrange premium funding for you we may be paid a commission by the premium funder. We may also charge you a fee. The commission that we are paid by the premium funder is usually calculated as a percentage of your insurance premium (including government fees or charges). If you instruct us to arrange or issue a product, this is when we become entitled to the commission.

Our commission rates for premium funding are in the range of 0 and 4% of funded premium. When we arrange premium funding for you, you can ask us what commission rates we are paid for that funding arrangement compared to the other arrangements that were available to you.

Do you have any relationships or associations with the insurers who issue the insurance policies or any other material relationships?

From time to time we may receive some form of material benefit from our insurer relationships. These may include administration support, commission overrides, subsidies or performance bonuses or profit share. The form and amount of such material benefit is essentially determined by the amount of the premium earned when compared with the claims experienced in our total portfolio with the relevant insurer. Due to the contingent nature of insurance and the way the arrangements are set up, it is not possible to know the amount, if any, to which we may be entitled until 3 months after the end of the qualifying period.

Examples of these insurer relationships include, Steadfast Group Limited (Steadfast) and Zurich. We also currently have binding authorities with:
• Berkley Insurance Australia
• Chubb Insurance Company of Australia Ltd;
• XL Insurance Company;
• Lloyds of London; and
• ACE Insurance Ltd.

What should I do if I have a complaint?

Contact us and tell us about your complaint. We will do our best to resolve it quickly. If your complaint is not satisfactorily resolved we will refer the matter to our Complaints Manager, alternatively you can put your complaint in writing and send it to the address noted at the beginning of this FSG. We will try and resolve your complaint quickly and fairly.

When you make a complaint to us, we will:

  • Acknowledge your complaint and make sure we understand the issues
  • Do everything we can to fix the problem
  • Keep you informed of our progress
  • Keep a record of your complaint
  • Give you the name of the person responsible for looking after your complaint and their contact details; and
  • Provide a final response within 45 days

If we are unable to provide a final response to your complaint within 45 days, we will:

  • Inform you of the reasons for the delay; and
  • Advise you of your right to refer your complaint to the Financial Ombudsman Service (FOS).

HIG is a member of the Financial Ombudsman Services (FOS). If your complaint cannot be resolved to your satisfaction by us, or if we have not resolved your complaint within 45 days, you have the right to refer the matter to the FOS. The FOS can be contacted at Level 12, 717 Bourke Street, Docklands VIC 3000 or on 1300 780 808, fax 03 9613 6399, email info@fos.org.au or www.fos.org.au.

What arrangements do you have in place to compensate clients for losses?

HIG has a professional indemnity insurance policy (PI policy) in place. The PI policy covers us and our representatives (including our Authorised Representatives and Distributors) for claims made against us by clients as a result of the conduct of us, our employees or representatives in the provision of financial services.

Any questions?

If you have any further questions about the financial services HIG provides, please contact us. Please retain this document for your reference and any future dealings with HIG.