Blue Zebra Insurance (BZI) has initiated talks with prospective underwriting partners following confirmation that Youi will cease supporting broker-distributed insurance in Australia as of July 1.
The insurer’s withdrawal is part of a broader strategic shift, outlined by parent company OUTsurance Group during its interim financial update for the first half of FY2024.
Youi intends to concentrate its efforts on direct-to-consumer business, which currently represents the bulk of its premium income and profitability.
Colin Fagen, managing director at BZI, said the business is focused on maintaining operational continuity for brokers while securing new capacity.
He explained that this development allows the company to pursue underwriting arrangements across its full product suite or individual lines, working with capacity partners aligned with its commitment to the intermediated model.
BZI is also exploring the acquisition of Youi’s shareholding in the company to further consolidate its independence.
Fagen assured brokers that there would be no disruption to existing policyholders during the transition period.
Current Youi-supported policies will continue to be issued until the end of June 2025, after which BZI will manage the run-off in collaboration with Youi and implement new underwriting arrangements.
“The team at BZI are grateful for the support from Youi during this transformational period of growth. We are confident that both businesses will continue to grow and evolve to suit our unique customer needs,” Fagen said in a statement.
BZI has reported steady expansion, transacting over $300 million in GWP last year.
It has diversified its portfolio to include cyber coverage via Lloyd’s and has rolled out additional lines such as personal accident, sickness, and farm insurance on its Blue Leopard platform. Its small business product suite is also now accessible through the Steadfast Client Trading Platform.
While the company has received industry recognition for service and innovation, BZI is now focused on leveraging the structural change to explore additional offerings and build broader market capacity.
Youi’s decision to exit the broker channel reflects its strategic focus on core operations.
According to OUTsurance’s financial report, the direct channel generated more than 90% of Youi’s operating profit and 85% of total GWP.
The report also confirmed that Youi earned $3.3 million from its minority investment in BZI during the period.
Fagen said Youi’s shift had been anticipated due to its longstanding emphasis on direct distribution.
