The birth of ExtrasJar
Frazier and Connor previously worked in big insurance companies as actuaries where they had an insider’s view on the problems customers faced with their plans. One of the major issues is that Australians are paying so much for their premiums, but are getting a lot less back in benefits, even the loyal customers.
“For health extras, the average Australians are only getting 47 cents back in the dollar. So, it effectively looks like you are just buying a gift voucher for your treatments from your $200 (premium). And that optical gift voucher only lasts for 12 months; it expires if you don’t use it,” Connor stated.
Aside from this, the two also have personal experiences about their health insurance coverage failing them, which triggered the establishment of ExtrasJar to create a solution and share it with others.
Frazier’s wife fractured her wrist, resulting in a trip to the emergency room, another to a specialist, and then to a physiotherapist. The several appointments have varying costs that build up, but she felt secure because she’s been paying her insurance premiums for years, hardly claiming anything.
Later on, she was very disappointed upon finding out how little her plan covered the costs. She paid around $3,000/year in premiums and only got $1,000 or less in rebates a year, to think that she has been paying for health insurance for two decades.
Connor, on the other hand, experienced a knee injury after a marathon and needed to see a physiotherapist. Similarly, he thought that his extras were sufficient to cover the cost as he has been paying for premiums without actually claiming anything.
It wasn’t until he discovered that only two sessions were covered by his health insurance that made him extremely frustrated about how much the insurance company made so much profit from him alone.
Following the said problems and frustrations, Frazier and Connor saw an opportunity when they went out and talked to several people. They figured that they could give Australians a solution through ExtrasJar, where their money remains theirs for their benefit around the clock.
Offering revolutionary protection that Australians deserve
ExtrasJar was built to empower Aussies to continue saving for their future as they gain access to quality healthcare, not just for themselves, but for their entire family, including their best furry mates.
“With ExtrasJar health extras, our customers can put their money in a nest egg, keep it there, and draw on it anytime they need it. ” Connor said. “As for ExtrasJar private health insurance, they just need to put a little deposit down, a bit like the bonds you pay a landlord. If nothing breaks, they will get it back, but those deposits will also be used to lower their premiums, so it rewards good behaviour.”
We are on a mission to give revolutionary protection through our radical approach that disrupts traditional insurance models. We give power and control back to our customers because we believe that that’s how insurance and extras coverage should be.
“Our disruption is switching our extras product. Instead of [it] being an insurance premium, it’s now an investment product. Your premiums are now invested in a managed investment scheme with ASIC, and we give you access to that funds at the point of sale to pay for treatment,” Frazier shared.
He added: “So, instead of paying a premium and disappearing if you don’t use it, here in ExtrasJar, your money will just stay there and keep growing.”
Raising capital to effect change for more Australians
ExtrasJar is currently holding a crowd-sourced funding campaign on Birchal, looking to raise a maximum funding target of $600,000 to upscale and expand our product offering that will pave the way to protect more and more Aussies.
“We’re really looking to help Australians benefit from their savings and invest for extras. At the moment, we’ve got a bunch of really engaged customers helping us to improve our product, and we want to take this capital, grow it, and let more people know about us,” said Frazier.
As of writing, we have already raised over $200,000 with more than 100 investors onboard, and we are still looking forward to more investors in our network joining us.
We are thankful for this engagement with ausbiz TV. It is really timely and worthwhile for us as we aim to reach more interested investors and become shareholders of ExtrasJar.
Watch the full interview here.
