Suncorp spends $6.45m to bring insurance app to Australia

Suncorp has sunk US$5 million (A$6.45 million) into US fintech startup Trōv as part of a partnership that will see the developer’s on-demand insurance app launch in Australia next month.

San Francisco-based Trōv has managed to generate equity totalling US$25.5 million in its latest round of fundraising, which includes money from venture funds OAK HC/FT and Anthemis group, insurer Guidewire, and Suncorp.

The new investment builds on an existing relationship between the app developer and the Australian insurer.

Last April Suncorp announced its customers would be able to send details of their insured items directly to the bank using the app, positioning itself as the exclusive insurance provider to Trōv.

The existing Trōv app allows users to record details of their personal effects, like purchase prices, photos and serial numbers, and track their value changes over time.

The latest development sees the pair take the integration a step futher with the Trōv ‘Protection’ product, which allows customers to buy item-by-item insurance instantly via a mobile phone.

The insurance product will allow premiums to be switched on and off on demand, the developer said. Claims will be made via text message.

Australian users will be the first to get their hands on the Trōv Protection app next month, with the UK to follow in the second half of 2016, and the US and other countries after that in 2017.

The product will be targeted at young consumers, and will initially be limited to consumer electronics, with coverage to expand month by month.

It will the underwritten by Suncorp Group’s AAI Limited.

Suncorp CEO Michael Cameron said the two companies had identified "strong customer demand for a seamless experience and have worked together to create this new platform”.

“We are excited to be investing in Trōv and look forward to building on these types of opportunities together," he said.

Trōv Founder and CEO Scott Walchek said Suncorp’s appetite for innovation was one of the reasons his company decided to bring the product to Australia first.