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SINGAPORE, Jan. 11, 2024 /PRNewswire/ -- A new report by leading consumer research firm, Value Champion*, shows how Singapore's insurance landscape has witnessed a remarkable shift, defying the traditional dominance of larger players. Among the emerging success stories, Budget Direct Insurance stands out as a shining example of innovation, growth, and customer-centricity.
The New Wave of Insurers
The report highlights the unprecedented growth of new entrants in Singapore's insurance market, challenging the norm where established players tend to squeeze out newcomers. Two notable players, Budget Direct and FWD, entered the scene in 2016 and rapidly gained momentum, especially in the motor insurance sector.
For instance, while Budget Direct's market share in motor insurance—Singapore's largest non-life insurance market—is still quite small, it has from launch grown its market share (by premium size) to almost 3% (as at the end of 2022).
In contrast, previously established insurance player AXA has completely exited the Singapore motor insurance scene in 2022.
The Value Champion report attributes part of the success of these new entrants to their ability to offer competitive prices swiftly, capitalising on the relatively small size of Singapore's insurance industry compared to the rest of the world.
For example, the report highlighted that Budget Direct offers motor insurance premiums that are 30-40% cheaper than average and tends to focus on offering benefits that are not typically seen with other insurers.
The award-winning Budget Direct Insurance team aims to provide a better experience than traditional insurers.
The Budget Direct Advantage
Simon Birch, CEO of Budget Direct Insurance, believes that while low pricing plays a role, it's just a small part of the overall success equation. Having worked in the Singapore car insurance space since 1995, he attributes their achievements to a customer-focused approach and a dedicated commitment to cost efficiency without compromising service quality.
Birch, no stranger to launching successful insurance ventures, founded Direct Asia in 2010. It was one of Singapore's first direct-to-consumer online insurers , expanding later into Hong Kong and Thailand before being acquired by Hiscox in 2014.
Emphasising the significance of fair, efficient, and customer-centric practices, Birch adds, "As an entrepreneurial and customer-focused business, Budget Direct aims to provide a night-and-day better experience than traditional insurers. By leveraging new technology and maintaining a healthy team culture, we're able to offer smarter, cheaper, and more flexible insurance solutions designed with customers in mind.''
Unlike many traditional insurers, Budget Direct allows customers to purchase quality insurance directly, eliminating the need for agents and middlemen. This can translate to a saving of up to 20% on motor insurance and up to 40% on travel insurance.
When it comes to buying insurance, their online platform provides a hassle-free experience, enabling customers to get a quote in just 30 seconds. The technology-driven approach also rewards safe drivers with lower premiums, ensuring fairness and affordability.
Recognising the individuality of each driver's needs, Budget Direct provides a range of optional covers, enabling policyholders to customise their insurance plans precisely. This departure from one-size-fits-all solutions eliminates unnecessary bundled plans, allowing customers to pay only for the coverage they truly need.
The company's use of cutting-edge technology, including cloud-based data storage, ensures efficiency and flexibility. Unlike larger insurers burdened by outdated systems, Budget Direct's streamlined operations result in faster services and lower costs for customers.
Birch also highlights the significance of a healthy team culture, where employees are empowered to work collaboratively and innovatively. A positive work environment translates into faster, more efficient services, benefiting customers in the process. This commitment to excellent customer service is exemplified by the prestigious Feefo Platinum Trusted Service award, earned consistently year after year. Since its launch in 2016, Budget Direct has garnered outstanding customer reviews on the Feefo platform.
A Singapore Success Story
In conclusion, Budget Direct Insurance emerges as a Singapore success story, disrupting the insurance landscape with innovation, transparency, and a relentless focus on customer satisfaction. As the company continues to grow, it believes its commitment to fair pricing, technological advancement, and a customer-centric ethos, coupled with its innovative and transparent approach, will continue to set new standards in the industry.
*Read the full Value Champion report here https://www.valuechampion.sg/why-singapores-insurance-industry-so-competitive
About Budget Direct Insurance
Budget Direct Insurance is an award-winning online digital insurance company for car, motorcycle, and travel. It is part of an international group which provides insurance solutions for millions of policyholders worldwide. Their brands include Compare the Market in the UK, Budget Direct in Australia, and Telesure in South Africa.
