Backd is designed to cater specifically to part-time, casual, and contract workers, offering benefits that include up to $300 per day for income protection and up to $150,000 for life cover. The product is integrated seamlessly into employer payroll and HR platforms, enabling streamlined online registration without the need for medical underwriting. Additionally, Backd supports fully digital claims processing, enhancing the user experience for policyholders.
The launch of Backd comes in response to a significant coverage gap identified within the Australian workforce. Estimates suggest that approximately one million Australians are underinsured for death and total and permanent disability (TPD), while 3.4 million lack sufficient income protection. This underinsurance is particularly prevalent among younger Australians aged 25 to 44, many of whom are employed under contractor, casual, or labour hire arrangements and lack basic leave benefits and affordable insurance options through superannuation.
Fiona Macgregor, TAL's Group CEO and Managing Director, emphasized the importance of making life insurance more accessible: "At the core of our Cover Genius partnership is ensuring more Australians who want and need insurance can get it. Life insurance is much more than death benefits. Last year, 74% of the 54,000 claims we paid supported the recovery of people with an illness or injury that prevented them from working."
Angus McDonald, CEO and co-founder of Cover Genius, highlighted the appeal of digital and bite-sized insurance products to younger generations: "Solutions such as bite-sized life and income protection can also serve as a way to engage younger Australians who may not yet have seriously considered their needs but have come to appreciate the ease and value of purchasing embedded protection online for other things such as travel and music events."
By embedding Backd into platforms that Australians use daily, TAL and Cover Genius aim to simplify the process of obtaining life and income protection insurance, thereby addressing a critical community need and enhancing financial security for a significant segment of the workforce.
