IAG invests in vehicle subscription service Carbar

July 17 2019 by InsuranceAsia News Staff

IAG has acquired a majority stake in Australian car subscription and trading platform Carbar.

The insurer participated with other investors in a A$16.8 million (US$11.8 million) capital raising.

Carbar, which has offices in Melbourne and Sydney, describes itself as the country’s first and leading car subscription service which provides an alternative to car ownership; it says its service is similar to subscribing to Netflix. A payment to Carbar can arrange insurance, registration, roadside assistance and maintenance and there is no lock-in contract; in addition it also buys and sells cars through its website.

The insurer says the investment will help it better understand emerging trends and play a key role in its future approach. IAG insures more than 3.2 million passenger vehicles in Australia.

IAG’s executive general manager of innovation James Orchard commented: “The focus of our investment and the partnership moving forward will look at emerging mobility trends and providing new sources of value to our customers.”

IAG has been selling its operations across Asia over the last 18 months to focus on its core markets of Australia and New Zealand.