German online broker to launch in Australia

German brokerage Friendsurance, which is based on social networking, is set to launch in Australia. The innovative brokerage plans to launch an offering this year, according to Perry Abbott, executive director of Friendsurance and Vantage Fund, which has a stake in the peer-to-peer intermediary.

The brokerage Friendsurance uses Facebook to connect people who pool their money together to purchase insurance. The more people that connect to form an insurance network and the fewer claims they make, the more money they are likely to get back at the end of the year.

The brokerage distributes a range of insurance including household, liability and legal expenses. Last year it launched  a new offering, providing insurance for electronics including TVs, laptops, mobile phones and tablets. Insurers sign up to Friendsurance to offer their products to customers.

Asked what products the brokerage will distribute in Australia, Abbott said: “Friendsurance will take the products being sold in those country and apply the Friendsurance model to create value for insurers and customers and increase the market share of insurers.”