Australian-first insurance for people on low incomes

Australian-first insurance for people on low incomes

We think it’s important for the whole community to be able to access car and contents insurance – regardless of their income. So we’ve been working with community groups and Australia’s biggest insurers to develop insurance policies that meet the needs of people on low incomes.

We’re pleased to have launched Essentials by AAI, the first accessible insurance cover for people on low incomes, developed in partnership with Suncorp.

We’ve worked with Suncorp and external advisors to build a relevant, affordable and simple insurance product from the ground up. For the first time in Australia an insurance product will allow people to ‘mix and match’ cover for contents and cars, with premiums starting as low as $4.00 per week.

Adam Mooney, CEO of Good Shepherd Microfinance, said 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.

“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,” said Mr Mooney.

Mark Milliner, CEO of Suncorp Personal Insurance, said the people who don’t have insurance are often the ones who need it the most.

“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.

“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,” said Mr Milliner.

 

About Essentials by AAI

The Essentials by AAI product is available through Suncorp’s dedicated call centre (Tel: 1800 429 598). Information about Essentials by AAI is also available through various community organisations across the country who offer Good Shepherd Microfinance’s award-winning No Interest Loan Scheme (NILS), and via the Essentials website www.essentialsbyaai.com.au.

Key features of the new product include cover options for contents $10,000/$20,000, and up to two cars valued at $3,000 and $5,000. Unlike other products in the market, policyholders will also have access to standard two excess-free claims with a low $100 or $300 excess applying to subsequent claims.

Watch a video about Essential by AAI here.

More News