Berlin-founded Friendsurance Insuretech will extend its operations to Australia through a license agreement with Friendsurance Australia; and with Ellerston Ventures, the venture capital arm of Ellerston Capital, as its primary financial backer.
Perry Abbott, Friendsurance Australia CEO and managing director, said: “The timing is right for Friendsurance in Australia because Australian customers are looking for new and different options in the insurance space.”
The insurance and finance industry expert said the Berlin-based disruptor is looking forward to bringing to Australian customers the average 33% annual claims reward in property lines enjoyed by their German customers.
Anthony Klok, Ellerston Ventures’ investment director, commented on his company’s support of the Australian start-up: “Ellerston Ventures invests in disruptive companies with innovative products –and Friendsurance fits this description. German customers have embraced Friendsurance because of its outstanding customer service and the cash-back incentive that is part of the peer-to-peer product. We expect the same positive reaction in Australia.”
Friendsurance will enable customers to share risk by forming groups and pooling their insurance premiums to cover smaller claims. Customers can also receive up to 40% of their premiums annually if they maximise their group size and make no claims. The amount returned to customers decrease as claims are made by the group.
Abbott said the P2P model and cash-back incentive are just the beginning in the evolution of insurance.
"People will always buy insurance because it makes good sense to be protected, but our lifestyles are changing and risks we are exposed to are different today than they were twenty years ago. Friendsurance wants to work with the insurance industry to offer customers new dimensions in insurance products that they’ll feel good about.”
Friendsurance is set to launch its first product in early 2017.
Major disruptor brokerage Friendsurance heading to Australia
Industry set to become ‘even more relevant’
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