Could easy, app-based home insurance make its Aussie debut this year?

Ben Tosi

Thursday 22 February 2018

If you’ve ever applied for a home insurance policy, you’ll know the oodles of patience required to complete the process. There is form after form to fill out, as well as the couple of days typically needed to have your application approved - but all of that could be set to change for Aussie customers.

Man secures home insurance via an app.

UK home insurtech company, Homelyfe opened its partner platform this week which allows third-party firms to cross-sell its products within their own apps.

The app-based insurer boasts some of the quickest turnaround times in the UK market, offering customers the chance to get their home, its contents (or both) insured in a matter of minutes.

Time-poor customers also forgo the long, drawn-out questionnaires that are a feature of many current home insurance policies with Homelyfe instead asking four simple, easy-to-answer questions.

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The idea is simple: you don’t have to leave the app to have your home insured.

“The number of questions required to take out home insurance is completely unnecessary but remains the industry norm. In the data-rich world we live in today, we should not have to rely on the consumer knowing these answers,” CEO and co-founder, Peter Goodman told Insurance Business.

App-based insurance in Australia

What you might be surprised to hear is that the Aussie insurance market has already started welcoming app-based insurers.

It was almost two years ago now that Trov launched downunder, bringing on-demand, affordable contents insurance to Aussie customers wanting to insure their phones, laptops, headphones and gaming consoles via an entirely mobile experience.

But, Homelyfe would still be pretty unique.

Unlike Trov, customers would be able to take out both contents and buildings insurance, offering a more traditional set of home insurance products through a far more modern avenue.

Where these two budding insurtech companies share common ground, however, is through their belief in an entirely digital, app-based experience.

Trov’s mobile app allows its customers to simply swipe to add or remove cover, managing any documentation online and make claims via text, while Homelyfe boasts that you can get a quote, buy, manage, renew and make claims all within the app.

Could Homelyfe debut downunder?

Home insurance might actually be sounding pretty attractive to many millennials right about now - but what are the chances that Homelyfe makes its debut downunder this year?

Well, after unveiling the partner platform, Goodman said that he believes a number of like-minded fintech companies would come forward to offer its suite of home insurance products within their own apps.

“There are many forward-thinking companies out there that are looking for ways to cross-sell insurance products alongside their own offerings.” he said.

“Like Homelyfe, many of these apps and websites recognise the critical importance of customer experience – the user journey is god – and this is where traditional insurance products are falling down.” 

The Aussie fintech landscape

While none of this necessarily means Homelyfe will arrive on Aussie shores, we have shown a willingness to take up exactly these kinds of opportunities downunder.

In fact, according to KPMG and the Committee for Sydney’s Scaling the Fintech Opportunity report released last year, although London is the fintech capital of the world, Sydney has the potential to become the fintech hub of Asia.

Ian Pollari, Head of Banking Sector, Sydney, KPMG Australia said that Aussie businesses are prepared to partner and work with budding mobile-based companies like Homelyfe.

“The report also highlights the active nature of many Australian financial institutions in proactively responding to the threats and opportunities of digital disruption, and are doing so through a variety of ‘build, buy and partner’ initiatives.”

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How does app-based home insurance sound to you? If it isn’t your cup of tea or you need cover while you wait for this kind of insurance to be made available down under, head to Mozo’s home insurance comparison tables to compare a range of popular policies currently available down under today.

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