LifeBid was set up by Brett Wright and his team to address the issues faced by customers and industry players alike when it comes to life insurance advice and cover. Currently the industry is characterised by excessive regulation, disparate systems and complex documentation that makes it uneconomical to assist those most in need of life insurance advice and cover, leaving a trillion-dollar underinsurance gap.
Addressing these challenges requires an industry-level technological transformation beyond individual stakeholders' capabilities. LifeBid was set out to develop an end-to-end solution connecting industry participants, streamlining compliance, and reducing the cost of servicing clients by up to 90%.
Questions from the audience
What is the business model?
LifeBid is planning to generate revenue through a B2B software-as-a-service (SaaS) business model. During the webinar, Brett hasprovided indicative pricing, which will be further market tested before product launch. The monthly subscription costs will be charged based on the user type and the organisation's size.
Given the scalability of software products like LifeBid, profitability is expected to increase as the customer base grows over time.
Will there also be a mechanism for shopping underwriting around to different providers?
The team is building in pre-assessments into LifeBid to help advisers assess the available options based on the clients’ health, financial position, occupation etc.
Am I right that LifeBid is simply a CRM that will help produce an SoA?
No, LifeBid is building an end-to-end solution to help advisers manage life insurance referrals, new business process, renewals, reviews, and claims.
Will there be data feeds from Insurers?
Will LifeBid compare only the insurance partners listed?
Comparisons will be based on the adviser’s research settings.
Will the SOAs and ROAs generated via this software be approved by AFSL providers?
This matter was tested with licensees and we have found that the licensees in the LifeBid working group have been happy with the SOAs and ROAs LifeBid is producing. Given the QAR recommendation is to move to a fit for purpose advice document, we are solving for this in our advice and ongoing service journey documentation.
How does LifeBid handle the non-standard/loadings /exclusions offers? Will it be built into the process? Also, is there any functionality to assist with the underwriting process - any automation or help with UHG or paramedical providers?
LifeBid is being built to handle non-standard offers, and integrations with paramedical providers are part of our product roadmap.
Does this integrate with XPLAN or Midwinter (or other popular CRMS), or does it require moving to this CRM?
LifeBid will have an open API to allow connectivity between other CRM's.
Does the software include the insurer commission processing and payment capability?
No, LifeBid is not trying to recreate commission processing systems, but we will have an open API to integrate with them for reporting and client segmenting.
Is this an alternative to existing solutions?
We are building LifeBid to be a single, end-to-end alternative to the many systems advisers currently use for life insurance advice and ongoing service.
Milestones and next steps
LifeBid has put together an Advisory Board consisting of insurance advisers, licensees, and six out of nine life insurers. This board has played a critical role in designing and validating the platform, which has generated significant interest from the industry. The waitlist for LifeBid consists of 2,000 advisers awaiting the platforms launch, and this number continues to grow.
The LifeBid team predicts that it will take an additional six months of software development after the capital raising is completed before the platform is available to the life insurance industry. The majority of the capital will be used to hire additional software engineers and customer success staff required to finalise the platform on time and create a great onboarding experience for the advisers on their waitlist.
How does LifeBid plan to launch its product?
LifeBid plans to launch its platform in three stages. The pilot advice practices will be onboarded to the platform in the first stage. The second stage will see the waitlist, consisting of approximately 2,000 advisers, onboarded. Finally, in the third stage, LifeBid will open its platform to the entire industry, enabling all advisers to serve more clients. This strategic onboarding process ensures that LifeBid can continuously gather customer feedback, improve its capabilities and drive profitability.
Additionally, the working group participants have pledged to help with marketing, distribution, and onboarding of industry users, which is expected to speed up industry adoption.
LifeBid aims to integrate with other complementary industries such as mortgage broking, accounting, general insurance, estate planning, and more as the business grows and expands. These additional products and services will simplify the process for advisers to work with their professional referral partners.
How will LifeBid be using the money raised?
LifeBid is currently seeking funding between $1m and $2m, with strategic investors already investing $630,000, therefore we are seeking a minimum of $370,000 and a maximum of $1.37 million through this CSF offer, some of which has already been committed by the Stride Group.
The allocation of funds will depend on how much capital LifeBid can secure in total between the minimum and maximum amounts.
In all events, most of the funds will be allocated to finalising product development. If only minimum funding is secured, LifeBid will first focus on developing the renewals feature. If the maximum funding is secured, LifeBid will release the other modules based on customer needs and requirements.
Thanks to the commitment of LifeBid's working group in supporting the product launch only a smaller portion of the funding will be required for marketing and business development.
Once the capital raising is completed, LifeBid plans to hire additional talent to achieve its business goals. The company's primary focus will be hiring software engineers and customer success staff.
How you can become a shareholder of LifeBid
Brett and his team are crowdfunding because they want the advice community and Australians who benefit from their platform to be the owners, beneficiaries and driving force behind LifeBid.
Investing in LifeBid is as simple, just visit the Stride Equity platform from 19 September 2023 and follow the prompts.
Priority access to offer is provided for an exclusive four day period between 15th September and 18 September to those who have registered their inserts before that. If you are one of those, you should have received your email. If you haven’t received it, please contact us on email@example.com.
Step by step instructions:
Create an account. To invest in LifeBid, investors must create an account on the Stride Equity platform. Then, they can visit the LifeBid offer page and click on "Invest Now." It's important to read and acknowledge the CSF Risk Warning, Offer Document and Disclaimers before proceeding.
Verify identity. Investors must verify their identity. If investing through a company, self-managed superfund (SMSF), or trust, investors must follow the instructions accordingly and provide a signed PDF version of their trust deed.
Investments over $10,000 will require an accountant's certificate. Investors must upload their certificates via the Stride Equity platform to confirm their sophisticated investor status. Trust deeds and accountant certificates will be reviewed as quickly as possible, but it may take up to 48 hours, depending on the level of interest.
Complete subscription form and transfer funds. Once the ID, investment vehicle, and wholesale investor status (if applicable) are reviewed and approved, investors can finalise their investments.
Stride Equity allows investors to transfer funds via bank transfer or direct debit for payments. It's essential that investors ensure that the nominated account has sufficient funds to avoid missing out on the co-investment opportunity due to insufficient funds.
Applications for investment will be accepted on a 'first come, first serve' basis. Once the allocation is filled, Stride Equity will be unable to accept additional applications.
The LifeBid's investor webinar recording can be accessed here.