Leaked emails have lifted the lid on the chaos surrounding the collapse of Perth-based authorised representative (AR) group Winley Insurance.

Insurers stand to lose millions after Winley’s broker trust fund was allegedly accessed by two individuals who were partners in the business and have since left the country.

An email dated April 14 from MD Jeff Bailey which has been seen by insuranceNEWS.com.au warns all ARs to discontinue processing business on Winley systems.

“For those ARs that have not chosen a new home, you need to make a decision on your new licensee please urgently,” he wrote.

“I cannot stress the point any harder for those that haven’t made this call yet, you need to sign to a new licensee and stop processing business under the Winley licence.”

Premiums that had been paid recently would be returned to clients, the email said.

“There are no funds to pay insurers and the ones that have paid in the last few days we can not allocate commissions to you as these funds will be returned to the clients.”

Mr Bailey says in the email he understood why some ARs were “pissed off”, but he was not to blame.

“I’m not the person responsible for misappropriating the funds I’m simply trying to mop up the best way I can given the situation that has been left behind from the other partners at Winley.

“I to (sic) personally have commission owed to me that I will not see also, so I’m in the same position as you guys are.”

The Australian Securities and Investments Commission continues to make inquiries into the collapse.

Mr Bailey has not responded to requests from insuranceNEWS.com.au for comment.