After thriving in the debt collection and repayments sector, Aussie tech solutions company Credit Clear Limited (ASX: CCR) is stepping into the insurance market, all thanks to its digital workflow process.
The Company signed a two-year agreement with IAG, one of the largest general insurance companies in Australia and New Zealand, to deploy its purpose-built digital workflow for third-party motor insurance claims, allowing third parties to pay online.
With IAG, Credit Clear increases its penetration into the Australian general insurance claims market.
Credit Clear CEO, Andrew Smith, said, “The insurance sector is a key strategic market vertical for us and we are progressively gaining traction in the Australian market, which we plan to both extend on and leverage in our future expansion plans.”
The digital insurance claim workflow improves debt collection rates and reduces the time to recover and improves the customer experience for the insured third party.
Through this agreement, the Company also expects to make its digital workflow process—allowing companies to digitalise their debt collection processes—the de facto one. And there are already plenty of takers for it. Credit Clear was named one of the Insurtech Start-up of the Year finalists in 2022 Australian and New Zealand Institute of Insurance and Finance (ANZIIF) industry awards for its digital insurance claims workflow.
In October last year, the Company announced its collaboration with another Aussie insurance group, ARMA. Credit Clear has an existing white-label engagement until 2025 with ARMA for its digital insurance claim workflow. It has allowed the Company’s product to reach more people, given that ARMA has earned a two-year contract extension with a state-based insurer. Plus, TAFE NSW—Australia’s vocational education and training department—has brought on ARMA to manage all arears payment plans for its domestic and international students.
Smith added, “The digitally-led offering is being well received for its potential to improve margins and collections outcomes for our customers. As we emerge from the traditionally quieter Summer months in the collections industry we expect to continue to see improving sales performance across the Company into the end of the Financial Year.”
Based on this expanded insurance sector business, Credit Clear expects insurance-related work to make a larger contribution to group revenue in FY23 of approximately $5.3 million, up 141% on insurance revenue in FY22. In H1 FY23, its overall revenue shot up over 160% on H1 FY22 to $17.4 million. And in 2023, it has already signed over $2 million worth of contracts in expected annual revenue during January and February.
It also entered the debt purchasing industry—not part of its core strategy. Entry into this sub-sector is seen as a complementary offering for debt purchasers and represents a key expansion of the Company’s total addressable market.
In the coming months, Credit Clear plans on onboarding more clients, with a focus on international ones. Besides strengthening its portfolio, it will also gain new leadership. On February 28, 2023, Paul Dwyer was appointed Chairman of the Board, effective from March 1, 2023.
Alinda is a Business Reporter for The Sentiment
Latest posts by Alinda Gupta (see all)
- Ovanti’s iSentric signs contracts worth $14.4m with Malaysian commercial bank - June 27, 2024
- Baby Bunting fights back from retail downturn with 5-year strategy, includes Gen-Z focus and self-funded growth - June 27, 2024
- CLEO meets with US FDA to develop strategy for ovarian cancer test launch - June 26, 2024
Leave a Comment
You must be logged in to post a comment.