Buy Now, Pay Later Option For Insurance Introduced By Coverpay

From next month “buy now, pay later” company Coverpay will offer a general insurance product. This will be aimed at consumers and SME’s after raising $2.5 million in launch funding to establish the platform. 

Managing Director Steve Gilbert shared that the company has taken inspiration from “buy now, pay later” in the retail sector when developing this product. A product that is aimed at insurance that will offer customers another policy payment option.

The platform is embedded into a merchants existing transaction process and can be used at the checkout for online policy sales. It can also be used in conjunction with payment portals, on invoices or utilising embedded links. The bill can be split over 12 fortnightly payments for the customer and Coverpay pays the merchant in full. 

A management fee of $7 is applied to each instalment. Customers are also given three days to make up a missed payment. After this time a default fee of $40 is added to any outstanding payment. 

The fees that they charge are fixed, which according to Mr Gilbert, “aligns with our guiding principles of fairness and transparency.”

“Underinsurance continues to be a significant issue in Australia and we know that affordability is a key aspect of coverage choice,” he said. “We believe Coverpay can play a part in addressing underinsurance by directing more funds into a customer’s insurance budget.”

Coverpay will initially provide payment plans for up to $2500. Mr Gilbert has over 20 years in the insurance and finance industries. Rosalie Lau, Lisa Woodley, Vibul Imatarnasan and Kiersten Lethbridge also make up the core team at Coverpay.