A Sydney-based fintech firm operating under a non-aligned licensee talks about the opportunities around the technology and how it is addressing the underinsurance problem.
Flare HR is an authorised representative of non-aligned licensee, MyPlanner, that provides all-in-one human resources (HR) and benefits software.
Its software aims to find the best life insurance for new employees and remove as many compliance hassles as possible.
Managing director and co-founder of Flare HR, Jan Pacas, told Risk Adviser the underinsurance gap is best tackled at the onboarding process.
“When any employee is onboarding, and the very first question we’re asking [is] what superannuation fund they would like to pick, we as a business are completely non-aligned to one or the other financial houses,” Mr Pacas said.
“We have independent funds on our panel and people can pick one or the other. We have a comparison engine that compares the different funds.”
Once an employee has made their decision, Mr Pacas said the next question becomes whether they want to increase their level of life insurance above the default level.
“We really ask this as a specific question because it is something that is of great value for all employees and all people in Australia,” he said.
“I think what our experience shows is that consumers like it significantly more because we make their life much easier.”
Mr Pacas suggested risk advisers can harness InsurTech to their advantage and not have to worry about being replaced by the technology.
“Do you want to embrace the technology as an opportunity and think hard about how you can use the technology to your advantage or do you want to be on the defensive side, denying that this is happening?” he said.
“The innovation is not that it completely substitutes insurance advisers but it makes it much more convenient for the consumer and shortens the buying experience and the entire process.”