CoverProof AI

CoverProof AI: AI-Powered Home Insurance Verification for Australian Banks

Overview

CoverProof AI is the platform that empowers lenders to verify and monetise insurance across their secured portfolio.

Meet APRA APS 220 requirements, eliminate invisible collateral risk, and where borrowers consent, the same compliance workflow also becomes a revenue channel. All from a compliance process you already have to run—with zero core banking integration.

The Challenge

APRA has sounded the alarm. The 2026 Insurance Climate Vulnerability Assessment (ICVA) revealed that 1 in 7 Australian homes are uninsured—and that problem is projected to grow. If an uninsured property is hit by fire, flood, or storm, your collateral value likely collapses. The call to action is clear, this is a direct credit risk and lenders need to implement a credible, scalable process to monitor collateral insurance.

Key Problems Solved

• Authenticity — Is the Certificate of Insurance accurate and fraud-free?

  • Runs document-level digital fraud detection.

  • Cross-references borrower names and addresses against lender databases.

  • Confirms the lender is formally named as an interested party on the policy.

  • Flags expired, doctored, or mismatched documents.

• Appropriateness — Does the policy cover the right climate perils?

  • Standard COIs often contain coverage exclusions. CoverProof maintains a library of Australian general insurer's policy terms against which to verify the policy matches the lender’s requirements.

• Adequacy — Is there enough coverage to protect the collateral?

  • Compares the sum insured against cost to rebuild estimates and property valuations.

  • Flags underinsurance gaps in precise dollar amounts—per individual asset and across your entire portfolio.

How It Works

• Step 1: Secure Engagement & Consent

  • Bank staff upload an extract from their Loan Management System. Next, in-scope borrowers receive a secure, bank-branded email explaining the process with a tokenised link they can use to provide verify their insurance details.  

  • For non-responders, automated reminders go out at Day 7, Day 14 and Day 21, before being escalated to the action queue. No borrower falls through the cracks.

• Step 2: Upload, Parse & Test

  • Using the secure link, borrowers upload their Certificate of Insurance (COI) and CoverProof AI’s engine takes over—extracting key details and verifying the policy's authenticity, appropriateness, and adequacy. The whole process is completed in under two minutes.

• Step 3: Real-Time Portfolio Monitoring

  • Your risk team gains access to a real-time analytics dashboard providing visibility on insurance coverage that bank’s need including: coverage rates, underinsurance gaps in dollar terms, and a map view that enables users to visualises geographic concentrations and outliers across the portfolio.

• Step 4: Consented Insurance Offers

  • When a Certificate of Insurance is verified, CoverProof AI identifies which insurer the borrower is insured with. If they’re already insured through the lender’s bancassurance partner, the verification is complete and nothing else happens. If they’re insured elsewhere (or if there is no bancassurance partner in place), with the borrower’s consent, a renewal offer goes out just before expiry, exclusively from your bancassurance partner (or if there is no bancassurance partner, offers from a competitive panel are sent). If borrowers declare no insurance, with consent, an offer goes out immediately.

  • In this way a compliance workflow becomes a revenue generating channel capable of increasing bancassurance product take up rates and producing meaningful revenue gains.

• No core banking system integration is required.

Benefits for banks

• Automates portfolio monitoring, reducing uninsured losses.

• Enhances climate risk quantification and borrower engagement.

• Ensures regulatory compliance.

• Ability to generate revenue from a compliance workflow.

Security & Compliance

End-to-end encryption 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.