What is on-demand insurance?

On-demand insurance is changing the way people think about and buy insurance. With on-demand insurance, you can get insurance instantly - anywhere in our covered countries, anytime. You only pay for the specific cover you want, when you actually need it and when you feel at risk.

The insurance industry was ripe for disruption. Weighed down by old-fashioned ideas and processes, younger buyers were literally just not showing up. In the past few years, start-ups and traditional insurers have been innovating to create new offers that better meet the needs and expectations of modern customers.

On-demand insurance makes up less than 1% of the global insurance market. Industry analysts predict rapid growth as more challenger brands enter the market. They’re taking on traditional insurers, giving customers more choice and attracting a new breed of customer wanting to do insurance their way.

What’s the difference between traditional insurance and on-demand insurance?

Whether you are looking at life insurance or car insurance, traditional insurance offers policies that cover you for a long period of time (for years). 

On-demand insurance allows you to get cover for short periods of time or just when you’re exposed to the risk. 

Not all risks can be covered by on-demand insurance. For example, you’re not more likely to get diagnosed with gallstones on Monday than Tuesday.  

Some risks though are higher during a shorter period of time, when something else is happening. For example, you’re only at risk of crashing your car when you’re driving. Or you might be at a higher risk of having an accidental injury when you’re hang gliding for the first time or playing in your weekly football match.  

On-demand insurance allows you to get cover only when you need it, for short-periods of time, that starts immediately. 

To offer this short-term, immediate cover, on-demand insurers need to use technology and simplify their products so they’re fast and easy to use. 

What are the benefits of on-demand insurance?

On-demand insurance appeals to many insurance customers because it’s:

• Convenient: on-demand insurance is usually offered through attractive, intuitive interfaces optimised for smartphones and tablets. The upside of this is you can sort your insurance anywhere - on the bus, on the couch or right before your helicopter takes off to drop you heli-skiing. Almost everything of importance now lives in a smartphone - music, social connection, entertainment and shopping - it’s natural you want your insurance to live there too.

• Fast: digital natives expect speedy delivery of products and services. Signing up for traditional insurance can be a lengthy, complex and tedious process. Some companies still rely on paper and human processing to gather information and provide quotes and approvals. It can take weeks, which is far too long for people used to buying things in one click. Fast, paperless transactions are everywhere, and people are starting to expect this when buying insurance. On-demand insurers harness the power of technology to provide instant cover. They streamline the application and claims process because they know their customers value it. 

• Simple: traditional insurance is complicated - full of legal terms, conditions, exclusions and fine print to wade through. Many people feel overwhelmed when trying to decipher insurance policies. On-demand insurers understand their customers value a simple approach. They make everything as clear as possible using visuals and examples. Exclusions are provided upfront in short lists that are easy to understand. 

• Flexible: on-demand insurance has flexibility at its core. Customers can choose exactly what they want to cover and when they want the cover. If you think about it, why would you buy a whole album when you just want to listen to your favourite song on repeat? Why would you sign up for a 200 channel cable subscription when you just want to re-binge Stranger Things? And why would you sign up for a year of health cover when you’re young, fit and mainly worried about breaking something when you ride too fast? Modern consumers are opposed to a one-size-fits-all approach. They want something that suits their fluctuating needs and wants and can change to fit their lifestyle. 

• Affordable: typically, on-demand insurance is cheaper because you only pay for cover when you need it. Many on-demand insurance companies offer cover by the day, by the item or kilometre so there’s no wastage. If you’re trying to protect your precious new bike there’s no point insuring the entire contents of your home (and then work out that your bike’s not covered if it gets damaged when you’re out and about). On-demand insurance allows you to feel confident knowing you have the protection you need, but you only need to pay for it when you feel at risk. It swings the odds in your favour.
  

Spotlight: Flip on-demand injury cover

Flip is an excellent example of a challenger brand intent on reinventing how insurance products are developed, priced and sold.

Our mission? To create insurance people love by daring to be different. 

In 2021, we launched Australia’s first on-demand injury insurance. Accidents and injuries often lead to out-of-pocket expenses in Australia. Flip offers affordable, straightforward protection to ease the stress of injury costs. It’s on-demand, so you only pay for cover when you feel at risk of injury.

Flip is backed by HCF, Australia’s largest not-for-profit health insurer. The on-demand injury cover was developed to meet the needs of under-insured Australians, especially young, active people who reject traditional insurance products because they’re complicated, expensive and not suited to their needs.

Let’s look at exactly how Flip’s injury cover delivers all the benefits of on-demand insurance:

• Convenience: you can sign up for a free Flip account on our website in minutes. Just answer a few quick questions and you’ll be ready to activate cover in minutes whenever you need it. Everything is easy to navigate and all you need is a device and internet connection and you’re good to go. 

• Speed: signing up is lightning fast, and you can get covered lickety split with no waiting periods. You don’t have to fill in forms or wait for a quote.. Just enter a few details and you’re done. If you have an accident when your cover is on, you can make a claim in a few steps. Approved claims get fast cash payouts to spend as you like. We get that you don’t want to spend time managing your insurance, so every interaction you have with us has been designed for speed.

• Simplicity: our cover is straightforward. We have set prices for our cover options (pay per day, per week or on a monthly subscription). We tell you upfront exactly what injuries are covered and how much we’ll pay you. If something’s excluded, we tell you in plain English so you know exactly what you’re getting. No loopholes, no surprises.

• Flexibility: you’re in control and can choose exactly when you want to be covered. Maybe you only want cover when you’re hiking, so you could pay $7 a day, just for trail days. Maybe you’re going away for a fortnight with friends who like to push limits, so you could sign up for a weekly subscription and cancel it when you get back. Maybe you just want cover in winter to cover your snowsport mishaps. Literally up to you - use it as much or as little as you need.

• Affordable: Flip Active is pay-as-you-go - either $7 a day, $25 a week or $40 for a monthly subscription. If you have an accident and get one of the specified injuries while your cover is on, you’ll get cash payouts for eligible claims, depending on your injury. Spend your payout on whatever you want - comfort food, medical bills, ubers to work - totally up to you.
  

A whole new way to think about insurance

It’s a big change. We’re all used to either having insurance or not having insurance, so being able to turn your cover on and off and grab insurance cover for a day at a time is a bit 🤯. So, take your time getting your head around it all. Explore our website to learn more, or click on the chat bubble to ask us a question 👇