Millions of Australian workers with little to no access to life insurance may soon find it easier to get cover, thanks to a new digital product launched by TAL and insurtech firm Cover Genius. The offering, called backd, embeds life, income, and illness insurance directly into payroll and HR platforms, allowing employers to provide protection without the need for medical underwriting or paperwork.
The product is designed with flexibility and simplicity in mind, particularly for part-time workers, contractors, and casual staff, which are segments often excluded from traditional insurance models. Workers can sign up entirely online, and claims are handled digitally from start to finish.
According to Cover Genius CEO and co-founder Angus McDonald, embedded insurance could be a key strategy to bridge the protection gap in Australia’s workforce.
“Many people do not have life insurance either because they feel they cannot afford it, have not been offered it or think the process will be too complex. backd overcomes these issues by giving employers a simple way to offer their employees easily accessible protection that suits their income and financial needs,” McDonald said.
backd offers income protection benefits of $100 to $300 per day and life insurance cover of up to $150,000. It is tailored for people who may not qualify for superannuation-linked group cover or find retail insurance options unaffordable.
TAL Group CEO and managing director Fiona Macgregor noted that younger workers are especially at risk of being underinsured. Research suggests around 1 million Australians are underinsured for death and total and permanent disability (TPD), while 3.4 million lack adequate income protection. Many of these individuals fall into age groups or employment categories that don’t have automatic coverage.
“Life insurance is much more than death benefits. Last year, 74% of the 54,000 claims we paid supported the recovery of people with an illness or injury that prevented them from working. With backd, more Australians will get support critical to their recovery, addressing an important community need,” Macgregor said.
The platform also aligns with shifts in consumer behaviour. Cover Genius data shows Australians aged 25 to 44 prefer digital, bite-sized insurance solutions – similar to how they already purchase protection for travel or event tickets.
“Making protection easy to understand, financially accessible and simple to access online through employers and other trusted partners is a logical next step in levelling the life insurance playing field,” McDonald said.
Over time, the companies plan to expand the reach of backd through partnerships in sectors such as banking and healthcare, enabling broader direct-to-consumer access.
