Credit Clear expects revenue from insurance clients to grow 150% to $5.5m in FY23
Australian provider of technology solutions to the debt collections industry Credit Clear announces that it significantly expanded its scope of work with one of Australia’s largest insurance groups and signed three new insurance providers in September, including Zurich Australian Insurance Limited (Zurich), Aioi Nissay Dowa Insurance Company Australia (ADICA) and another specialist motor insurance providers, while other insurance opportunities are building strongly in the pipeline.
Based on this expanded insurance sector business, the Company expects insurance related work to make a materially larger contribution to group revenue in the next 12 months of approximately $5.5m, up 150% on insurance revenue in FY22.
Expanded scope of work
Credit Clear’s relationship with one of Australia’s largest insurance groups has been significantly expanded with ARMA Group (ARMA) being appointed to the insurer’s third-party recoveries panel. The contract represents the largest win for ARMA and, as one of Australia’s largest insurers, the client ranks as the largest client to have signed a third-party recoveries contract with ARMA. Credit Clear has an existing white-label engagement with the insurer for digital third-party motor claims.
Zurich Australian Insurance Limited (Zurich)
Zurich Australian Insurance Limited (Zurich) has engaged ARMA to support its third-party motor claims in Australia helping to drive better recovery outcomes. This is supported by Credit Clear’s hybrid approach, combining the automated digital platform with highly skilled operators.
Two motor insurance specialists
Two new motor insurance specialists are utilising the Credit Clear digital portal to assist with managing third-party instalments for their motor claims including Aioi Nissay Dowa Insurance Company Australia (ADICA). The platforms will be white labelled and guide third parties through the Company’s digital platform. The objective for the insurers is to improve recovery rates and the third-party experience. One of the insurers underwrites general insurance products under its own brand and for a large automotive manufacturer.
Progress in the insurance sector has been particularly notable and the Company expects to be able to announce significant new insurance clients in the coming months.
Insurance case study
A case study completed in September conducted with a large Australian insurer has clearly demonstrated the value of Credit Clear’s hybrid approach and bespoke customisation for the insurance industry.
Credit Clear achieved the following results during the case study:
- On average, it took customers with insurance 3 days to complete Credit Clear’s digital workflow and 4 days for consumers that did not have insurance
- 79% of third parties engaged on digital channels
- 88% of those that successfully verified themselves completed the digital self-service process
- A record was set using the digital workflow process where completion was achieved in 13 days from third-party claim initiation to payment, without human contact
Insurance technology recognition
Credit Clear was named as an Insurtech Start-up of the Year finalist in the 2022 Australian and New Zealand Institute of Insurance and Finance (ANZIIF) industry awards for its digital third-party insurance claims system, developed in collaboration with a large Australian insurer.
The completely digital (no human contact) third-party recovery solution has shown to improve engagement and collection rates as well as significantly reduce the time to recover and improve the customer experience for the insured third-party.
Credit Clear CEO, Andrew Smith, commented, “Credit Clear is well positioned to significantly expand its offering to the insurance sector, with the help of industry leaders now on our board, by deploying the digital platform to ARMA’s insurance clients, and offering hybrid end-to-end capabilities to existing insurers using the digital platform, in addition to our ability to pitch and win material new business.
“As we have seen in other industries, Credit Clear is changing the way that insurance companies engage with their customers. The overwhelming objective is to improve the customer experience during the payment process and Credit Clear has proven itself to be a leader in achieving better customer experiences (as measured by Net Promoter Scores), better engagement rates, recovery rates and faster end-to-end process.”