Sydney-based insurtech LifeBid has backed up a successful $700,000 raising with $1.45 million in new backing via a crowdfunding campaign. 

LifeBid says its digital platform enables financial advice providers and insurers to manage clients’ life insurance needs while cutting costs by up to 90%.  

The funds raised, with investor Stride Equity, will be used in the development and delivery of the LifeBid platform, and 147 new investors participated, mostly from the financial sector, including some of Australia’s largest advisory practices. 

It has assembled a working group with top retail life insurers, industry expert advice partners and an experienced advisory board to help market and distribute the LifeBid platform. 

Founder Brett Wright says it can be “hard, unprofitable and risky for advisers, licensees and insurers to help more Australians.”  

“A confluence of technology inadequacies and regulatory complexities are making risk advice unviable for advisers to provide and unaffordable for consumers to access,” he said. 

“We want our adviser and licensee industry colleagues to be owners, beneficiaries and the driving force behind LifeBid.” 

Around 75% of all new life policies are issued by only 1700 advisers, with many Australians remaining underinsured. In-force policies are declining, and claims are rising.  

LifeBid’s main source of revenue will be through monthly subscription fees for advisers, licensees and insurers. Its Advisory Board, comprising insurance advisers, licensees, and six out of nine retail life insurance companies, has been instrumental in designing the platform. Austbrokers Life MD Ben Donald is an investor.  

“LifeBid’s digital platform is being developed to enable the 16,000 financial advice providers and insurers around the country to seamlessly engage, educate, advise and manage clients’ life insurance needs, while cutting costs to serve,” it says.