McGrath backs startup Honey Insurance with $6.5m

Real estate agency chain McGrath will invest $6.5 million into Australian insurtech startup Honey Insurance and use it to offer insurance services to its customers.

Honey Insurance has only existed since June last year. It had previously raised $15.5 million from the likes of AGL, Metricon, Mirvac and PEXA.

In addition to investing in the startup, McGrath said it intended to offer home and contents insurance services from Honey to its customers, "including homeowners, landlords and renters".

McGrath CEO Eddie Law said the partnership with Honey “further enhances McGrath’s digital product offering for our clients”.

“Honey will give McGrath’s clients access to a unique customer proposition for home,  contents and landlord insurance powered by smart, simple technology,” Law said.     

“This will simplify the insurance process experience for our clients at competitive pricing.”

Speaking to iTnews, Law added the Honey partnership is “really about the delivery of ... scalable models for products that are relevant to our clients and doing it in a very technology-efficient way”.

"The reality is [home insurance] is a $10 billion market in Australia that's relatively controlled by few, so this was an opportunity to come in and disrupt and be a partner with a disruptor," Law said.

The partnership with Honey comes after McGrath digitised its Oxygen home loan business in early 2021.