The Private Health Insurance (PHI) and Life Insurance markets in Australia are in decline. Our population is ageing, and with that comes increased health issues, and in turn, increased claims numbers. On the other hand, younger, healthier people aren’t thinking about insurance, or seeing the value in it as much as they used to (except those juicy little tax incentives).
The problem? This is leading to a lethal combination for the industry, not only for insurers, but because it means younger people are out there adventuring, potentially unprotected (no, not that kind of unprotected, stop it you).
Want to know more? Check out these reports from APRA, which discuss just how the industry is looking. There’s also this handy little tool that outlines just how much you could be up for in the case of an injury, and might make you rethink this whole cover thing (TL;DR, it can be eye watering).
We saw an opportunity to jump in and flip the industry on its head, by delivering On Demand Cover, designed to protect healthy people in the micro-moments they feel at risk. Put simply, we’re aiming to deliver relevance to those who may otherwise not see the value in getting covered. Big task, we know.
Wait, what’s the difference?
So glad you asked. When talking to customers, there are a few things that stuck out to us:
Simplicity
Insurance is overwhelming, complex and very adult. There’s a lot of terms that only make sense if you’ve completed a five year law degree (if you’re lucky), and for a lot of people, it’s just easier to put it in the too hard basket. By simplifying terms, cutting out legal jargon, and creating three clear benefit tiers, Flip is able to make cover so easy to comprehend, even your dad would understand.
Relevance
Existing products require healthy people to pay for coverage they don’t need. That is, they feel like they’re paying for coverage for things they’re unlikely to encounter, or get a benefit from. So we decided to cover soft tissue injury (netballers, we see you) and minor dental (mountain bikers, you too) in our coverage, so that the injuries you’re more likely to experience are supported too. Instead of encouraging people to err on the side of caution, we inspire them to get out there, but in a way that puts mum’s mind at ease.
Cost
We heard there are moments when there is a desire for protection, but these moments alone don’t justify getting traditional products. Although you’re at higher risk, the ongoing cost outweighs the chance of needing to make a claim. Sure, the justification makes sense, but it seems pretty risky to us. Offering On Demand Cover allows us to protect people for those riskier moments, while keeping the cost lower than a cheeky avo toast (yep, $9 per week). Pair that with the ability to cancel and re-join when needed, and we think we might be onto something.
The bottom line
When we heard there was a need for a different kind of protection for healthy Australians, we couldn’t help but answer the call. It was persistent, like a morning alarm set at five minute intervals. So far, we think we’re doing alright at flipping insurance on its head.
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