Butter Insurance, a Sydney-based InsurTech startup which offers subscription-style insurance policies, has raised $1.3m in pre-seed funding.
According to a report from Business News Australia, the round was backed by Flying Fox VC, Quokka Ventures, FB10X adVentures and Startmate.
Founded in 2021 by former lawyers Steph Skevington and Cassie Bell, Butter Insurance allows its users to view and manage their insurance policies, track claims and update payments from one central web-app.
The platform aims to democratise access to insurance, particularly for young people and renters, by offering subscription-style insurance policies at checkout.
Butter Insurance said it plans to launch its direct-to-consumer offering this month, which will allow consumers to insure electronics such as iPhones and laptops within sixty days of purchase via its platform.
Bell said, “Insurance is the un-sexy corner of financial services that has been ignored for too long. Our goal is to provide more tailored ways for people to insure only the things they care about. Whether that’s their laptop, jewellery, snowboard, the customer is in complete control.
“By partnering with retailers and using open banking integrations, Butter aims to make the process of taking out insurance seamless and simple. You get the flexibility of a single-item policy, and the convenience of purchasing through any store at checkout.”
Butter Insurance also recently secured its first major partnership deal with Australian Payments Plus (AP+).
This partnership brings together Australia’s three domestic payment providers: BPAY Group, eftpos Australia and NPP Australia. It marks the first time an insurance solution will be embedded within the Australian payments system.
The collaboration will see Butter Insurance integrate with eftpos’ eQR Digital Marketplace, an alternative payment option that allows consumers to make payments with their smartphone by scanning a QR code.
Another Sydney-based insurance startup, Upcover, recently raised $4.7m in a seed funding round to further its mission to simplify insurance for Australian small businesses.
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