The insurtech has gained a lot of attention in recent months. Not only has Butter Insurance secured $1.3million worth of pre-seed funding; it has also become the first to embed an insurance solution within Australia’s payment systems in partnership with BPAY Group, eftpos Australia, and NPP Australia – collectively Australian Payments Plus.
Former lawyers Steph Skevington and Cassie Bell founded Butter Insurance in 2021 with a vision to democratise access to insurance – especially among Australian youth. Butter Insurance offers users subscription-style insurance at checkout for purchases such as smartphones and laptops, with the option of paying for the insurance cover on a monthly or yearly basis and the ability to back out at any time with no cancellation fee.
Butter users can then access one central web-app to do everything from viewing and managing their insurance policies, tracking claims, and updating payments.
Its insurance-at-checkout feature and centralised app management have led to its description as ‘AppleCare meets Afterpay’, Business News Australia reported.
“Insurance is the un-sexy corner of financial services that has been ignored for too long,” said Bell. “By partnering with retailers and using open banking integrations, Butter aims to make the process of taking out insurance seamless and simple. You get the flexibility of a single-item policy and the convenience of purchasing through any store at checkout.”
Butter Insurance is looking to launch its direct-to-consumer product later this month, which will allow users to insure electronics within 60 days of purchase via its platform. Its collaboration with Australian Payments Plus also means that Butter Insurance will be integrated with eftpos QR, giving consumers the option to make payments with their smartphone by scanning a QR code.
Bell said that Butter’s research revealed a direct correlation between having an option for insurance at checkout and customer loyalty and spend. They noted that many retailers refused to venture into insurance anyway, because “it detracts from their core business offering”. Butter Insurance addressed that issue with a plug-and-play solution and a fresh brand that spoke to customers.
“Our policies are also designed to meet the lifestyles and expectations of our customers,” Skevington said. “You’re covered for accidental damage and theft anywhere in the world, not just the four walls of your home, which really matters when you’re walking around with an $1,800 phone in your pocket every day.
“We’ve created Butter to improve financial wellness – to proactively protect what matters for a few dollars a month, instead of putting thousands of dollars on a credit card to replace an item when accidents occur.”
Bell added: “Our goal is to provide more tailored ways for people to insure only the things they care about. Whether that’s their laptop, jewellery, snowboard – the customer is in complete control.”
Source: Insurance Business Magazine