Consumers favor more personalized products and are willing to share additional personal data with insurers to secure benefits, including an enhanced claims process and cheaper premiums
Insurers need to consider long-established customer imperatives such as affordability, value for money and a preference to purchase insurance through agents
SINGAPORE, Aug. 17, 2023 /PRNewswire/ -- The majority of consumers polled in Capco's 2023 survey of insurance policyholders in Singapore want more personalized insurance, notably in the case of long-term savings products (76% of policyholders), life insurance (74%) and health insurance (73%). This and other findings in the survey highlight a clear opportunity for insurers to innovate to deliver products and services that are more precisely tailored around customer needs and expectations.
In addition, an overwhelming majority of the 1,000 Singapore policyholders (90%) polled in the survey are willing to share additional personal data with insurers for a range of benefits. Enhancing the claims process was the leading motivating factor cited (49%), followed by cheaper premiums (46%) and more personalized services (45%).
While customers largely prefer to purchase insurance through traditional channels such as agents, many are open to sharing additional data with to get a more personalized product or offering. Forty-three percent will consider sharing this data through wireless wearables, such as smart watches. The same percentage would consider doing so via a fitness test and 38% via a smart device in their home.
Capco's Singapore survey polled a representative sample of policyholders between the ages of 18 and 65 years to capture consumer attitudes to insurance and insurers, including preferred purchasing channels, decision drivers, their views on the claims process and insurance apps, and their appetite for personalization and sharing personal data.
The associated report highlights key innovation trends and offers recommended paths forward for insurers looking to capitalize upon the opportunities – including differentiated customer experiences, more tailored products and enhanced cross-selling – that flow from the positive attitudes towards data sharing captured by Capco's consumer research.
Lance Levy, CEO of Capco, said: "The future of insurance products will be increasingly tailored to each individual customer's needs, with insurers using dynamic pricing among other methods to guide customers to the right product, at the right time and place, with the right premium. The insurers who can most successfully integrate data and technological tools to complement their business strategy will be the ones that stay ahead of the competition."
Erienne Wong, Managing Principal at Capco Singapore, said: "The volume of data potentially available to insurers has grown exponentially. While they recognize the importance of being data-led, customer-centric and tech-focused organizations, they have yet to master translating data at speed into impactful insights and actions. With the right data and technology capabilities in place, insurers can rapidly create more innovative and personalized products to help them better compete."
Other key findings in Capco's Singapore report include:
When purchasing insurance, the two most important decision factors are affordable premiums (51%) and value for money (45%).
Most respondents (64%) prefer to purchase their insurance through representatives and agents.
The vast majority (81%) of respondents who have made a claim are satisfied with their experience.
Three-quarters (76%) of insurance app users are positive about their app experience.
A range of additional app features, including booking an appointment with a doctor (32%) and health information resources (32%), are of interest to Singapore app users.
Capco's 2023 Singapore insurance survey can be downloaded here. A number of other national market reports are also available and more will be published in the coming weeks. Capco's latest global insurance survey was conducted during February and March 2023 and collected responses from 13,750 policyholders aged 18 to 65 years across Singapore, Hong Kong, Greater Bay Area (ex Hong Kong), Thailand, Malaysia, the UK, Switzerland, Germany, Belgium, Poland, Italy, the US, Canada, and Brazil.
About Capco
Capco, a Wipro company, is a global technology and management consultancy specializing in driving digital transformation in the financial services industry. With a growing client portfolio comprising of over 100 global organizations, Capco operates at the intersection of business and technology by combining innovative thinking with unrivalled industry knowledge to fast-track digital initiatives for banking and payments, capital markets, wealth and asset management, insurance, and the energy sector. Capco's cutting-edge ingenuity is brought to life through its award-winning Be Yourself At Work culture and diverse talent. To learn more, visit www.capco.com or follow us on LinkedIn, Instagram, Facebook, and YouTube.
