A recently-announced corporate-community partnership has declared a commitment to developing a home and contents insurance product that is tailored to the meet the needs of people on low incomes. The partnership, between Good Shepherd Microfinance and insurer Suncorp Group aims to address the serious issue of underinsurance in Australia, by creating a product that is affordable.
“Almost 20 per cent of the Australian population do not have general insurance such as vehicle insurance, building insurance or contents insurance,” says Chief Executive Officer of Good Shepherd Microfinance, Adam Mooney. “For people on low incomes, a financial shock like a car accident or loss of household assets, can push them over the edge.”
The home and contents insurance products, under the brand ‘Good Insurance’, will be distributed through Good Shepherd Microfinance’s local provider network to clients across Australia and will use existing Suncorp Group resources and back-end product infrastructure and administration.
“Good Insurance will enable many people living on low incomes to access tailored insurance products at an affordable price. This partnership is a best practice example of how business and community can work together to develop innovative solutions which help to address the issues of financial exclusion in Australia,” said Mr Mooney.
Australia is a land of many natural disasters – storms, cyclones, floods, bushfires and even hail. In the past twelve months alone the Perth Bushfires, NSW bushfires and Cyclone Ita have each caused many millions of dollars damage to property. For those who are uninsured, the loss can be financially devastating.
While the eligibility requirements for Good Insurance are still to be determined, the plan is to use Good Shepherd Microfinance?s trusted provider network to provide access to these insurance products in local communities. The microfinance network includes 257 connected community organisations in 650 locations across Australia.