1Cover has announced its partnership with Adyen to consolidate its payments infrastructure across the regions of Australia and New Zealand.
Founded in 2003, 1Cover was among the early providers of online travel insurance in Australia and today serves customers across both markets. As the company scaled, its fragmented payments infrastructure, which is spanning multiple regional providers, created reconciliation burdens and inefficiencies that prompted a consolidation strategy.
Consolidation and operational gains
Since going live on the Adyen platform in May 2025, 1Cover has reported measurable reductions in operational costs. Over the first nine months, the insurer achieved approximately USD 25.032 (AUD 35.000) in savings, driven primarily by infrastructure optimisations, including local card routing. The company projects total annual savings of up to approximately USD 35.735 (AUD 50.000) as the platform's benefits continue to scale.
In addition, the migration has enabled access to local payment methods across both countries, automated reconciliation to reduce manual intervention, and machine-learning-driven fraud prevention. Consolidated reporting and dedicated local account management have further reduced the administrative overhead associated with the previous multi-provider model.
The move reflects a broader challenge facing the insurance sector. According to Adyen's Australia Insurance Report 2026, more than half of insurers (representing 51%) still rely on manual processes and legacy infrastructure, while 93% report that fraud costs their business up to 5% of annual revenue. The data points to a sector where fragmented payment and risk systems carry a significant operational and financial toll.
Strategic context
For 1Cover, consolidating onto a single global provider addresses both the cost and complexity dimensions of that challenge. The shift to a unified platform supports automated money movement, reduces reconciliation effort, and provides a foundation for additional payment capabilities as the insurer continues to expand its regional footprint.
Hayley Fisher, Adyen Country Manager, noted that insurers are under growing pressure to reduce operational complexity while maintaining reliability at the point of transaction, a dynamic that positions platform consolidation as a structural rather than incremental improvement.
According to the official press release, 1Cover has indicated it is exploring further payment capabilities on the platform, though no specific timeline or product details have been disclosed.
