Honey Insurance founder and CEO Richard Joffe says a new distribution deal with power company AGL offers the insurtech “incredible scale” and is just the first of many such partnerships.

AGL, which provides services to around 28% of Australian households, is investing $3 million in Honey and offering its products to customers who are building a new home or renting.

“This is only the beginning of many unique and joint offerings to come,” Mr Joffe said. “We couldn't be happier to have a more aligned partner to be our first to market with.”

Honey’s offering uses smart home technology, including sensors that can proactively detect preventable incidents such as fire, water damage or even theft and AGL Executive GM Future Business and Technology John Chambers says it fits with a desire to invest in businesses with technology to make customers’ lives easier.

“We have seen the success of smart home technology overseas and believe that it is an untapped and growing market here in Australia,” he said.

Honey launched in June targeting the home and contents market after securing $15.5 million in seed funding from its underwriting partner RACQ and other investors, including AGL, builder Metricon, Afterpay co-founder and CEO Anthony Eisen and Airtasker co-founder Tim Fung.

Mr Joffe, who co-founded two start-ups in the US, says Australians “deserve a sweeter deal,” which is why he named the insurtech Honey Insurance.