Consumers in Singapore have an average of three different insurance products split across three providers, but 55% of those polled say they would prefer to deal with a single provider, according to a new survey by the customer behaviour company, Collinson Group.
Following the rise of price comparison and aggregation services, the way people buy insurance has fundamentally changed – competition is fierce, prices are lower and consumers use multiple providers.
However, Collinson Group research among 2,500 loyalty programme members in four markets including Singapore has found that customers would value a more streamlined way to buy insurance through a single provider.
Banks can capitalise on this opportunity by offering insurance products through loyalty initiatives, or value-added packaged accounts and credit cards – improving the customer experience, boosting loyalty and generating incremental revenue, Collision Group said in a statement.
When asked why they would prefer insurance products with a single provider, 86% of those surveyed cited convenience. 44% said they would expect better prices for staying loyal and 42% said they would expect to receive added benefits or rewards for staying loyal to one provider.
When asked why they use multiple providers, close to half (46%) said their provider doesn’t offer different products, and almost a third (32%) said they don’t feel there is any benefit to staying loyal.
The survey findings also show that 74% affluent middle class customers in Singapore highly value health insurance, 69% travel insurance and 60% lost cards assistance.
Research commissioned by Collinson Group was conducted by Vanson Bourne. A total of 2,500 consumers were interviewed in September 2016. The respondents had to be members of at least one of the following loyalty programmes: airline, hotel or retail banking/credit card. Interviews were conducted online in the US, the UK, Singapore and the UAE.
Collinson Group’s affluent middle class research was conducted by SSI Research during January 2016. 6,125 consumers within the top 10-15% of earners in Australia, Brazil, China, France, Hong Kong, India, Singapore, the UK, the US and the UAE.
The statement did not mention the survey sample sizes for Singapore alone.