Finsure locks exclusive partnership with smart home insurance provider

Launched in June 2021 following a $15.5 million capital raising with investors that included property settlements platform PEXA and ZIP Co founder and global chief executive Larry Diamond, Honey Insurance is an Australian-based home contents insurer that provides $250 worth of sensor technology to its customers, alongside lower premiums for proactive behaviour. 

In what is believed to be an Australian-first, according to Finsure CEO John Kolenda, the deal will see Honey Insurance’s offerings integrated into the aggregator’s customer relationship management platform, Infynity. 

It’s been said that the process from quote to accepting an insurance policy will take less than three minutes. 

Further, under this arrangement, brokers in Finsure’s network will be able to offer their clients Honey Insurance products following a short online education program. 

Mr Kolenda said that he was delighted to announce the exclusive partnership and that he believed this deal would be a “game changer” for its broker network. 

As at 30 September 2021, Finsure serviced more than 2,050 brokers and managed a loan book of roughly $60 billion.

“We know our brokers’ customers have so much to think about during the mortgage process and that’s why Honey and Finsure have teamed up to provide a smarter, faster, easier way for customers to get covered for home insurance,” Mr Kolenda said. 

“In what we believe is an Australian first, customers of Finsure brokers can now get their home insurance at the same time they get their mortgage in an embedded journey.

“As part of our exclusive arrangement, every eligible customer [will] receive pre-settlement cover which means an additional 90 days on their insurance policy to ensure they are covered right up until their day of settlement.”

Honey Insurance Founder and CEO Richard Joffe said: “We have designed a digitalised process that embeds home insurance into the mortgage application form making the process quicker and easier for home buyers at the right time of the mortgage process. 

“We know that buying a house can be an overwhelming experience and currently a lot of the questions a customer will be required to answer, will also be the same questions an insurance provider will ask. 

“So by integrating the process it makes complete sense to simplify this mortgage process giving the customer precious time back.”

The news of the partnership comes as the owner of Finsure, BNK Banking Corporation, confirmed last month that it had secured APRA approval for its sale of the aggregator to MA Financial Group (MAF). 

The deal is expected to be completed by next week (7 February).

Mr Kolenda is also expected to remain in his role as Finsure’s CEO. 

Speaking in December, Mr Kolenda said: “Finsure is uniquely positioned as a scalable, technology-enabled platform with a differentiated service proposition to become one of the most powerful pieces of financial infrastructure in the Australian residential mortgage market.

“MAF can support Finsure in this journey through its access to capital, credit and lending capabilities and technology expertise.”

[Related: Finsure sale clears regulatory approval]