CoverProof AI: AI-Powered Home Insurance Verification for Australian Banks
Overview
CoverProof AI, developed by Sustain 2050, is a secure, privacy-compliant platform that enables banks to monitor borrowers' home insurance coverage throughout the loan lifecycle.
Using AI to extract and structure data from borrower-uploaded documents, it addresses provenance, appropriateness, and adequacy of insurance—key for managing credit and climate risks under APS 220.
The Challenge
APRA's APS 220 requires ADIs to ensure collateral is appropriately insured at origination and maintained ongoing. Yet, privacy laws block insurers from sharing data on any coverage, manual processes lack scale, and Certificates of Currency often miss critical details like hazard inclusions or rebuild costs.
Rising climate risks amplify this: without insurance visibility, banks can't accurately assess exposure. APRA's FY26 focus on insurance affordability highlights the urgency.
Key Problems Solved
Provenance — Verifies authentic coverage for the right property/policyholder.
Appropriateness — Confirms inclusion of hazards (e.g., flood, bushfire).
Adequacy — Checks coverage against valuations/rebuild costs, integrating sources like PropTrack.
How It Works
No core banking system integration is required:
Bank generates encrypted, secure link for borrower request.
Borrower uploads Certificate of Currency (PDF/photo).
AI extracts data; borrower confirms (human-in-the-loop).
Structured data, insights and exceptions made available to the bank through the CoverProof Insurance Monitor dashboard.
Benefits for banks
Automates portfolio monitoring, reducing uninsured losses.
Enhances climate risk quantification and borrower engagement.
Ensures regulatory compliance with auditable trails.
Builds borrower trust through consent-based sharing.
Security & Compliance
End-to-end encryption, symmetric tokens, and alignment with Australian Privacy Principles, APRA, and ASIC—no data shared without consent, using cloud infrastructure designed to be compliant with CPS 230.
Get Started
Contact us for a demonstration.
