Insurance Finder Australia :: News
SHARE

Share this news item!

Sphere Liquidation Highlights Why Broker Due Diligence Matters

Clients should use the latest industry shake-up as a prompt to check continuity, credentials and policy records

Sphere Liquidation Highlights Why Broker Due Diligence Matters?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The liquidation of authorised representative network Sphere Insurance Group has put broker governance and client continuity back under the spotlight.
According to early estimates reported by Insurance News, the failed network could owe more than $11 million to creditors, including insurers, underwriting agencies and a secured lender.
The figures are preliminary and based on company records, with the liquidator still investigating the group’s financial position.

For everyday policyholders and small business owners, the headline number is not the only issue. Sphere operated as an authorised representative network, meaning individual representatives could provide insurance services under the broader structure. When a network enters liquidation, clients may be left asking practical questions: who now manages my policy, will my renewal reminder still arrive, and who should I contact if I need to make a claim?

The available information suggests the liquidator is still working through company records, trust account dealings, stakeholder communications and potential recoveries. That process may take time. In the meantime, clients connected to affected representatives should not assume their insurance cover has disappeared, but they should act quickly to confirm their position. The insurer listed on the policy schedule is usually the first place to verify whether cover remains current, premiums have been received and claims contacts are up to date.

This story is also a timely reminder that choosing an insurance broker is not just about finding someone who can obtain a competitive premium. A reliable broker should be able to explain who they are licensed through, how client money is handled, what happens if a representative moves networks, and how renewal and claims responsibilities are documented. These checks are especially important for small businesses that rely on uninterrupted cover for property, liability, transport, professional risks or strata obligations.

There is also a broader trust lesson for the insurance sector. Consumers are already sensitive to rising premiums, complex policy wording and concerns about transparency. When a broking network fails, even if the direct impact on individual policyholders is limited, it can reinforce anxiety about whether advice channels are stable and accountable. That makes clear communication essential.

Anyone reviewing their broker relationship should ask a few practical questions:

  • Is the broker or authorised representative clearly linked to an Australian Financial Services Licence?
  • Do you have current copies of all policy schedules, invoices and renewal notices?
  • Have you confirmed who will assist with claims if your usual contact changes?
  • Are broker fees, commissions and service arrangements explained in writing?

For clients who feel uncertain, this is a sensible moment to compare insurance brokers and seek guidance from licensed professionals. A well-matched broker can help translate complex cover into clear decisions, particularly when market disruption makes certainty more valuable than ever.

Published:Friday, 19th Jun 2026
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Rate this article

1 Comment

J
Jaime Carter 19 Jun 2026

The point about checking who actually holds the AFSL is a good one, because I reckon a lot of people just deal with the person on the phone and never realise there’s a bigger licence structure behind them. I’d be curious what the simplest way is to compare insurance brokers on that sort of due diligence, not just price.

Insurance News

Taree Flood Lessons Renew Pressure on Insurance Affordability
Taree Flood Lessons Renew Pressure on Insurance Affordability
17 Jul 2026: Paige Estritori
A fresh roundtable in Taree has put flood insurance affordability back under the spotlight, more than a year after the May 2025 floods devastated parts of the Manning Valley and Mid North Coast. The discussion, co-hosted by Insurance Council of Australia CEO Andrew Hall and federal MP Alison Penfold, brought together business and council leaders to examine why recovery alone is not enough when the underlying flood risk remains. - read more
NIBA Code Draft Puts Broker Fee Transparency Back in Focus
NIBA Code Draft Puts Broker Fee Transparency Back in Focus
10 Jul 2026: Paige Estritori
Australia’s broker transparency debate has resurfaced after the National Insurance Brokers Association released the final draft of its revised Insurance Brokers Code of Practice for consultation. The issue centres on whether small business clients should automatically receive clearer disclosure about how their broker is paid, even when the policy they are buying is not treated as a retail insurance product under the Corporations Act. - read more
NSW Insurance Taxes Put Premium Affordability Back in Focus
NSW Insurance Taxes Put Premium Affordability Back in Focus
03 Jul 2026: Paige Estritori
New South Wales insurance customers are again at the centre of a cost-of-cover debate, after the latest state budget papers showed insurance-related taxes and levies are expected to raise more than $3 billion a year across the forward estimates. - read more
Sphere Liquidation Highlights Why Broker Due Diligence Matters
Sphere Liquidation Highlights Why Broker Due Diligence Matters
19 Jun 2026: Paige Estritori
The liquidation of authorised representative network Sphere Insurance Group has put broker governance and client continuity back under the spotlight. According to early estimates reported by Insurance News, the failed network could owe more than $11 million to creditors, including insurers, underwriting agencies and a secured lender. The figures are preliminary and based on company records, with the liquidator still investigating the group’s financial position. - read more


Insurance Articles

The Importance of Life, Trauma and Income Protection Insurance for Families
The Importance of Life, Trauma and Income Protection Insurance for Families
When it comes to protecting your family's financial future, understanding the basics of life, trauma, and income protection insurance is crucial. These insurance types provide a safety net during challenging times and offer peace of mind for families. - read more
Navigating the Insurance Maze: The Role of Brokers in Simplifying Your Choices
Navigating the Insurance Maze: The Role of Brokers in Simplifying Your Choices
Insurance brokers play a vital role in helping individuals and businesses navigate the complex world of insurance. Unlike direct insurers who offer their own products, brokers act as intermediaries between clients and a range of insurance companies. Their primary goal is to find the most suitable coverage tailored to their clients' specific needs. - read more
How to Choose the Right Insurance Broker for Your Business
How to Choose the Right Insurance Broker for Your Business
Choosing the right insurance broker is a crucial decision for your business. A good broker serves as an invaluable partner, helping you navigate the complex world of insurance. - read more
Understanding Your Family Insurance Needs
Understanding Your Family Insurance Needs
In the hustle and bustle of everyday life, securing the future of your family might not always be on the top of your list. However, understanding and obtaining the right insurance is crucial for your family's security. Life can be unpredictable, and having the appropriate coverage can provide peace of mind and financial stability when unexpected events occur. - read more

Knowledgebase
Reinsurance:
Insurance that an insurance company purchases from another insurance company to mitigate risk.