Premium funding and AI security: what a finance application gives away in ChatGPT or Claude.

Arranging premium funding is routine liaising: an email to the funder with the policies, the premiums, the client’s details and a direct debit authority. It is also a finance application, which means it carries bank details, directors’ identities and a representation about the client’s capacity to pay. This page marks every item in a typical funding email that the brokerage holds in confidence, from the guarantor’s identity details the Privacy Act protects to the company’s bank account and finances, and shows why a document that exists to move money should never be drafted anywhere the brokerage does not control.

The premium funding application

Sent to a premium funder when a client elects to pay premiums by instalments, with the policy details and a direct debit authority.

To: New Business, Harbour Premium Funding¹
From: Priya Desai, Pacific Harbour Insurance Brokers (broker code PH0421)⁸
Subject: Funding application: Harbourline Joinery Pty Ltd²

Please find attached the funding application for the following:

Borrower. Harbourline Joinery Pty Ltd, ABN 51 824 753 556, 14 Wattle Street, Brookvale. Director and guarantor: Daniel Chukwuemeka Okafor, DOB 9 June 1979, driver licence NSW 1234 5678.²
Policies funded. Meridian business pack $38,420; commercial motor $6,180; management liability $3,940. Total $48,540 including GST and charges.³
Terms. 10 monthly instalments of $5,132.97 from 1 December 2026, interest rate 5.5% flat, application fee $120. Total payable $51,329.70.⁴
Direct debit. Commonwealth Bank, BSB 062-000, account 1234 5678, account name Harbourline Joinery Pty Ltd.⁵

For your credit assessment: the client has funded with you for three years with no dishonours. Turnover for FY26 was $3.4m, down on the prior year following the loss of a major customer; the client advises two new contracts commence in January. The workers compensation policy lapsed briefly in March for non-payment and was reinstated; the client attributes this to a change of bookkeeper.⁶

Please note the client has asked that instalments fall on the 1st rather than the 15th to align with its own receivables cycle, and that any dishonour notices be copied to us before the client is contacted.⁷

Priya⁸

An invented email. The ABN is the ATO’s published example value; the licence and bank account numbers are placeholders. Hover or tap any highlighted item for the analysis; the full list is below.

What leaves the brokerage

The funder

The financier the client uses. A commercial relationship, and a third party.

Frontier Models (ChatGPT, Claude)	Transmitted to the provider, generally offshore on personal plans
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

The borrower and the guarantor, with identity details

A company, its address, and a director’s full name, date of birth and licence number as guarantor. The identity facts a fraud needs. Privacy Act guide.

Frontier Models (ChatGPT, Claude)	A guarantor’s identity details transmitted
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

The policies and premiums

What the client insures and what it costs. Commercial information.

Frontier Models (ChatGPT, Claude)	Transmitted and kept on the provider’s terms
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

The finance terms

The instalments, the rate and the total. Credit information about the client.

Frontier Models (ChatGPT, Claude)	Credit terms transmitted
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

The bank account

A full BSB and account number for a direct debit. The item that turns everything else into money.

Frontier Models (ChatGPT, Claude)	A bank account transmitted
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

The credit representation, including the downturn and the lapse

The broker’s account of the client’s creditworthiness, including a revenue fall and a lapsed policy with the client’s explanation. A representation the brokerage is responsible for, about a client’s finances.

Frontier Models (ChatGPT, Claude)	A credit representation and a lapse transmitted; on consumer tiers they can train future models
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

Payment timing and a request about dishonours

Operational, and revealing about the client’s cash flow.

Frontier Models (ChatGPT, Claude)	Cash-flow signals transmitted
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

The broker and the broker code

Ties the application to a named broker and the brokerage’s account with the funder.

Frontier Models (ChatGPT, Claude)	Transmitted, and the leak is traceable to you
Ermos Edge	Stays on your instance in Australia; leaves only inside a permitted excerpt, per question, to the named provider
Ermos Dominion	Stays on the unit in your office

What happens in Frontier Models (ChatGPT, Claude)

The whole document is transmitted to the provider’s servers. On personal plans the user cannot choose where it is stored or processed, and for the major providers that has generally meant outside Australia, under that country’s legal process. Some business plans offer storage in Australia, but the provider still receives the content.
On consumer tiers, prompts can be retained and used to train future models.
The provider’s staff and systems can reach the content under the provider’s own policies.
Once sent, the brokerage no longer controls it. Retention and deletion happen on the provider’s terms.

The same document on Ermos

Ermos Dominion

The document is drafted on a unit in your office, from your own templates and the client file. Every marked item stays on the unit, which keeps working with the internet switched off. Nothing in it is transmitted to an AI provider, so there is no disclosure to analyse: the confidentiality work is the same as for your file server.

Ermos Edge

Your documents, the index and your access boundaries stay on your own instance in an Australian data centre. When a staff member asks for this draft, only their question and the excerpts they are permitted to see go to a named Australian provider, who is contractually barred from keeping the content or training any model on it. Nothing is processed outside Australia.

	Frontier Models (ChatGPT, Claude)	Ermos Edge	Ermos Dominion
Where the document is processed	Provider servers, generally offshore on personal plans	Your instance in an Australian data centre; answers generated in Australia	The unit in your office
Who can read it	Provider staff and systems, under policy	Your staff, within the boundaries you set. The named Australian provider processes only permitted excerpts, under contract, and keeps nothing	Your staff only
Is it kept	On the provider’s terms	Kept on your instance; the provider is barred from retaining it	Stays on the unit
Can it train a model	On consumer tiers, yes	No, by contract	Only your own unit learns from it, on your hardware

Part of AI data leakage in insurance brokerages. See how this works in practice: Renewal preparation on Ermos.

Common questions

Do ChatGPT and Claude use the information in a premium funding application?

Both receive the whole application on the AI company's servers once it is pasted. As at October 2026, whether a conversation on a personal plan (ChatGPT Free, Plus or Pro; Claude Free, Pro or Max) can be used to train the models depends on a setting each user controls. Business plans (ChatGPT Business and Enterprise, Claude Team and Enterprise) and the developer APIs sit under commercial terms, and OpenAI and Anthropic each say they do not train on that content by default (OpenAI, Anthropic). On either product, the thumbs up and thumbs down buttons can send a whole conversation back for training. A funding application puts a guarantor's licence number, the instalment schedule and the credit representation in one paste.

Is it safe to paste a premium funding application into ChatGPT or Claude if we remove the names?

No, because the identifiers in a funding application sit in the numbers. Removing names rarely makes a document anonymous. Information stays personal information while the person is reasonably identifiable, and the OAIC warns that information can be at risk of re-identification even when it has been de-identified or anonymised. A guarantor's date of birth and driver licence number identify a person on their own. The ABN and bank account number tie the application to one business. The Office of the Australian Information Commissioner (OAIC) recommends in its guidance on commercially available AI products that organisations do not enter personal information, and particularly sensitive information, into publicly available generative AI tools, because of the significant and complex privacy risks.

What if staff use their own ChatGPT or Claude account for a premium funding application?

The brokerage loses sight of what was sent. On a personal plan the user cannot choose where conversations are stored or processed. Some business plans let an organisation choose to store data at rest in Australia (OpenAI), which still leaves the content with the AI company. Both companies can also review content that is flagged for safety or policy reasons. A funding email is routine, so it is easy to hand to a personal account unnoticed. The brokerage cannot see, retrieve or delete the bank account and guarantor details that went with it.

How can a brokerage use AI for a premium funding application without sending it to ChatGPT or Claude?

Ermos is built so the document stays under your control. On the Dominion AI unit it is drafted inside your office and none of it is sent to an AI provider. On Ermos Edge your documents and index stay on your own instance in an Australian data centre, and only the question and the excerpts the user is permitted to see go to a named Australian provider that is contractually barred from keeping them or training any model on them. The application is drafted from the policy schedules, the client's details and the funder's template. The broker checks every figure, including the instalments and the bank account, before signing and sending it.

It is a routine email to a funder. What is different about it?

It is a finance application. Everything on it, the identity details, the bank account, the instalment schedule and the dates money moves, is what payment redirection fraud is built from, and the funder is the party a fake email would impersonate.

Is the broker's credit representation a problem?

It is a statement about the client's finances in the brokerage's name, which the funder relies on. It belongs in the application and in the brokerage's file. On a frontier model provider's servers it is the client's revenue fall and a lapsed policy, retained on terms nobody agreed.

How is a funding application prepared on Ermos?

From the policy schedules, the client's details and the funder's template, on your own unit. The broker checks the figures and sends it. The bank account and the guarantor's identity never leave the brokerage to produce it.

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