National broker group Westcourt says it is confident the collapse of Perth-based authorised representative (AR) group Winley will not negatively affect the wider AR model.

As insuranceNEWS.com.au has reported, insurers stand to lose millions after Winley’s broker trust fund was allegedly accessed by two individuals who have since left the country.

Westcourt, which last year began using the term “authorised brokers” to describe its member companies, says the fall of Winley will lead to underwriters exercising greater caution.

“With Winley’s demise there will be a differential between the top AR networks and just brokers leveraging their licences out for ARs to rent,” co-director Tremayne West told insuranceNEWS.com.au.

“The top networks have been around for some time and have the infrastructure to support that network. Winley was the cheapest and the most recent in the AR space.

“Westcourt doesn’t have a brokerage, so our complete focus is on our ARs. There is no conflict of interest.

“The networks with the principles and compliance practices will be trusted by underwriters, and the demise of Winley will raise the professionalism of those dedicated AR networks.”

The Australian Securities and Investments Commission continues to make inquiries on Winley, but a spokesman told insuranceNEWS.com.au no official comment can be made at this stage.