McGrath will invest $6.5 million in Australian insurance company Honey Insurance and utilize it to provide insurance services to its clients.
Honey Insurance has only been in existence since June of last year. It previously secured $15.5 million from investors including AGL, Metricon, Mirvac, and PEXA.
In addition to investing in the business, McGrath stated that it planned to provide Honey’s house and contents insurance services to its clients, who include “homeowners, landlords, and renters.”
According to McGrath CEO Eddie Law, the collaboration with Honey “further strengthens McGrath’s digital product offering for our clients.”
“Honey will provide McGrath’s clients with access to a one-of-a-kind consumer offer for house, contents, and landlord insurance powered by smart, easy technology,” Law explained. “This will streamline the insurance procedure for our clients while still providing competitive prices.”
“The fact is that [home insurance] is a $10 billion industry in Australia that is basically controlled by a few, so there was an opportunity to come in and disrupt and work with a disruptor,” Law explained.
McGrath’s engagement with Honey comes after the company’s Oxygen home loan business was digitized in early 2021.