Zurich Financial Services Australia has introduced a new insurance offering, Home Loan Protection (HLP), which automatically adjusts coverage and premiums based on the outstanding balance of a customer’s mortgage.
The product uses Open Banking technology to track changes in the mortgage, ensuring that policyholders’ insurance coverage remains aligned with their current loan obligations.
Home Loan Protection is designed to provide flexible insurance that evolves as homeowners pay down their loans.
When a customer’s mortgage balance decreases, both the insurance coverage and the premium are recalibrated to reflect the new amount. This approach is intended to prevent over-insurance and ensure customers are only paying for the coverage they require.
The policy offers several types of financial support. If the insured is unable to work due to illness or injury, or if they lose their job through circumstances beyond their control, the product provides instalments to help with loan repayments or everyday living expenses.
In the event of death or terminal illness, a lump sum is paid out, which can be used to settle the remaining mortgage.
Zurich’s research highlights that home ownership remains a significant goal for many Australians, but concerns about job security and the ability to meet mortgage payments persist.
According to the company, one in five Australians aspire to own a home, while a similar proportion are worried about employment stability and mortgage repayment.
Tim Kane, head of retail at Zurich, said the product is designed to address these concerns.
“As a customer pays off their loan, the level of cover and monthly premium will automatically adjust with it. This unique feature demonstrates the power of utilising data and technology to ensure customers receive a tailored solution that meets their needs,” he said.
The product is available for direct purchase through Zurich’s online platform once a home loan is approved.
The introduction of Home Loan Protection comes as Zurich Insurance Group reported robust financial results for the first half of 2025 (H1 2025).
The company’s property and casualty (P&C) division posted an operating profit of US$2.4 billion, representing a 9% increase from the previous year.
Gross written premiums and insurance revenue in this segment rose by 7%, and the combined ratio improved to 92.4%.
Natural catastrophe losses accounted for 1.8% of the combined ratio, compared to 2.4% in the prior year.
Commercial Insurance contributed US$1.8 billion in operating profit, with the combined ratio improving to 90.5%.
Growth was recorded in both the middle market and specialties lines, with the latter achieving higher underwriting margins.
The retail segment also showed improvement, with a combined ratio of 94.1%, attributed to pricing adjustments and portfolio management.
Zurich’s life insurance business reported an operating profit of US$1.0 billion, maintaining last year’s record level.
The contractual service margin surpassed US$13 billion, and new business and gross premiums increased by 20% and 14%, respectively.
Farmers Exchanges, another Zurich business, saw a 5% rise in gross written premiums, supported by higher policyholder retention and favourable rate conditions.
Brokerage fee income grew by 34% year over year, reflecting increased distribution and new business activity.
