LIME disrupts traditional life insurance industry
When traditional life insurance companies give you lemons, ask for LIME instead. Launched last Monday, Life Insurance Made Easy (LIME) is Australia’s first life insurance service that is complete web-based – offering affordable advice-based insurance cover online and a policy generated in less than 15 minutes.
No call centres. No medicals. No fuss. The LIME business model is based on straight-talking and cutting through the hidden costs often associated with sourcing adequate life insurance to suit the needs of families and individuals.
With over 20 years of experience in the financial services industry, Shaun Williams is all too aware of the pitfalls and problems with providing life Insurance. He joined a group of like-minded leaders from across various sectors in Australia; and on a blank sheet of paper jotted down what was right and what was wrong with the current life insurance business model.
The idea for LIME was inspired by the fact that 95 percent of Australians with dependent children don’t have life insurance – mostly because they don’t quite understand it.
“If we can help Australians understand their own life insurance position then we believe this number will improve considerably. Lime believes that it’s not the fact that these 95 percent don’t care about what happens to their family if they are not around, it’s more that they have not received advice to point out the gap,” says Williams, CEO of LIME.
“We believe that offering the service online and complimentary will open up access to advice not available elsewhere.”
According to the Australian Bureau of Statistics, the average Australian needs $495,000 of life cover, which translates to approximately $25 per month with LIME depending on the circumstances of the individual.
LIME has been in its development phase for four years. They initially built small prototypes and tested these with various target markets. The model changed drastically with each iteration.
“After two years of this process, the end model was clear to us and we went about choosing one of the world’s largest reinsurers in Scor, then negotiating a quality product through AIA Australia. We then chose Bluechilli as the platform developer and haven’t looked back, we are very impressed with all of the team,” says Williams.
LIME has analysed all the costly elements within the current life insurance value chain and have either removed them or improved them. This way, LIME is inexpensive compared to other offerings in the market, and in some cases up to 50 percent cheaper than some of the larger call centre based offerings seen on television.
Williams says that people only consider life insurance when buying a house, having children, getting married or changing jobs – events that change our lives and dependancies. So LIME will be partnering with businesses that operate in these particular event changing markets.
Given LIME’s unique approach to life insurance, one of the biggest challenges for the team is to maintain their focus on building the proposition with the user being front and centre, and not be swayed into the industry’s current practices.
Lime has been in beta phase since June, and has opted to stay under the radar to quietly improve and test. They’re now ready to enter the next stage in the business’ lifecycle.
“We are all very proud of Lime, but we are only now at the start line of a long journey,” says Williams.
For more information, visit www.lifeinsurancemadeeasy.com.au.