NFP Insurance for Low Income Aussies
Tuesday, 22nd September 2015 at 10:50 am
Accessible insurance cover will be available to people on low incomes through a partnership between Not for Profit organisation, Good Shepherd Microfinance, and Suncorp, in what they have called an Australian first.
According to the Centre for Social Impact, one in five adults in Australia does not have general insurance cover for their home and contents or car. Good Shepherd Microfinance CEO, Adam Mooney, said many of these people are living on low incomes and can’t access insurance which compounds the disadvantage they experience.
“Without insurance, it’s not possible to use everyday essentials, such as a car, with the peace of mind that comes with knowing you are protected if bad luck strikes,” Mooney said.
“Our experience with financial programs for people on low incomes shows just how easy it is to slip into hardship after a financial shock such as the loss of a family asset which can be expensive to replace.
“Insurance is important in enabling our clients to build assets and some wealth, however small, to act as a buffer against financial hardship and to build resilience.”
He said Good Shepherd Microfinance and Suncorp worked with external advisors to create Essentials by AAI, with intention of being a relevant, affordable and simple insurance product.
“Customers can “mix and match” cover for contents and cars, with premiums starting at $4.00 per week. Unlike other policies, Essentials by AAI offers flexibility in payment options, including fortnightly direct debit via Centrelink’s Centrepay.”
Mooney said the insurance supports people to become “economically mobile”.
“We know that Essentials by AAI will have a positive impact on the lives of people who have previously been excluded from insurance products due to barriers like affordability or suitability,” he said.
Suncorp Personal Insurance CEO, Mark Milliner, said the policy directly addresses the insurance needs of people on low incomes.
“Working with Good Shepherd Microfinance has helped us to better understand the needs of those doing it tough. We’ve found that traditional insurance is often too expensive for them, and in many cases the level of cover is simply too high,” Milliner said.
“Our research shows that this market just wants cover for essentials like their second hand car and whitegoods. We have worked with financial counsellors, Legal Aid, the Financial Ombudsman Service, researchers and consumer representatives who have helped us to design a product to do just that.
“We’re really excited to be able to offer this first-of-its kind product which enables people on low incomes to accumulate and use assets with a much needed financial safety net.
“It’s a great example of working with others in the community to create something that addresses the issues of financial exclusion in this country.”