This report is a part of a global series of research commissioned by Cover Genius to examine consumer preferences towards receiving embedded insurance offers directly from their financial institution of choice.
In this report, titled The Embedded Insurance Survey: Singapore, 513 census-balanced bank customers in Singapore were surveyed by Momentive.ai (the research business of SurveyMonkey) on how they would react to receiving insurance offers based on real time transaction data. They were asked the following:
Suppose your bank, with your permission, monitored your transactions and offered a prompt for purchasing protection products based on your purchase history inside of your banking app. Please indicate how interested you would be in allowing them to make these offers.
The results overwhelmingly found that Singaporean consumers have a strong desire for bank-embedded insurance offers, an opportunity to more effectively connect their digital activities to an existing relationship in an economy undergoing an accelerated shift to digitization. The growing demand for embedded insurance also presents a challenge that “bancassurance” partnerships between traditional banks and insurers — where offers are divorced from underlying activities — cannot solve: 83% of Singaporean digital bank customers would be highly interested in receiving embedded insurance offers based on their transaction data, as would 62% of traditional bank customers. ‘Convenience’ is the primary driver for their interest, stated by 58%.
The research aligns with data across the globe that points to significant demand for timely and relevant transaction-based insurance offers, with the majority of consumers showing extremely high preferences if they’ve recently made big purchases or had major life events especially. Notably the data shows that the traditional ‘second step’ of insurance distribution is outdated and not aligned with the expectations of an increasingly digitized customer base. 86% of Singaporeans who chose a traditional insurer or broker in the last 12 months would prefer bank-embedded offers for next time.
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These individual reports include a deep dive by insurance product line