TAL inks deal with insurtech to launch embedded life insurance

Australian life insurer, TAL, and global insurtech, Cover Genius, have joined forces to launch a new ‘digital-only’, embedded life insurance solution designed for Australian workers who have limited access to “affordable protection options”.

The solution, backd by TAL, seeks to address a gap in the market for millions of Australian part-time workers, contractors and casual employees who may not be eligible or have adequate access to other types of insurance cover, by integrating insurance options into pre-existing platforms, such as payroll.

backd allows employers to provide Life, Income and Illness protection through an online registration process with no underwriting required and all claims processed digitally.

“At the core of our Cover Genius partnership is ensuring more Australians who want and need insurance can get it. To do this, cover should be tailored to their needs, and be easy to access, understand and keep,” TAL Group CEO and Managing Director, Fiona Macgregor, said.

“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.”

According to the Financial Services Council’s Underinsurance Report from 2022, one million Australians are estimated to be underinsured for death and total and permanent disability (TPD), at the same time as 3.4 million Australians – concentrated among younger Australians – have “no or insufficient income protection” according to the Australian Bureau of Statistics in August last year.

TAL said the service is targeted towards the millions of Australian workers with contractor, casual, or labour hire arrangements that do not have access to basic leave benefits or affordable insurance options through superannuation, with benefits paid of $100 to $300 a day for Income Protection and up to $150,000 for life insurance.

“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,” Angus McDonald, CEO and Co-Founder at Cover Genius, said.

“backd overcomes these issues, by giving employers a simple way to offer their employees easily accessible protection that suits their income and financial needs by simply embedding it into their existing HR or payroll platform.

“With backd, we’re providing the right cover, via the right channel, at the right price. Solutions such as bite-sized Life and Income Protection can also serve as a way to engage younger Australians who may not yet have seriously considered their needs but have come to appreciate the ease and value of  purchasing embedded protection online for other things such as travel and music events.

“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.”