Click and get insured
Insurers are using the web to offer customers a quick and efficient method of buying policies that also saves them money.

THE Singapore market is seeing an emergence of direct-to-consumer insurance businesses that are utilising the Internet to attract customers. These companies are out to change consumer perception of the general insurance market in Singapore by offering flexibility, convenience and greater saving on policies and plans. Aviva is the first entrant that penetrated the market through the direct business model in April. Mr. Simon Machell, chief executive of Aviva Asia Pacific, says: “The rising affluence of Asian consumers has led to an increasing need to insure their growing assets. Our online model enables us to support them by cutting out the middleman and passing on significant savings along with greater convenience and flexibility.” The company started out with direct online car insurance and has since rolled out other products like home, life and health insurance. The website, www.aviva.com.sg, provides fuss-free interface for customers to quickly access the variety of plans available to them. For car insurance policies, customers can choose to buy only the extra cover they want and select the optional extras they would need including named driver, higher excess, audio coverage, personal accident, identity theft, loss of keys and loss of use. Policies can be modified or renewed online instantly and at any time. Aviva also offers “best in class customer service” where accidents reported via its “24/7/365 dedicated hotline number” will have on-scene support within 20 minutes anytime, anywhere in Singapore. The support team will handle all the necessary documents and arrangements even call a complimentary cab for the policy holder to get home.

Last month, a new insurer, DirectAsia.com, launched their operations in Singapore for the first time. Fully owned by Whittington Group, it offers car, travel, home and personal accident insurance through its user-friendly website. Mr. Andrew Byrne, chief executive officer of DirectAsia.com says; “We have been listening to what consumers in Singapore have to say about the escalating costs of their insurance policies and poor claims service, and DirectAsia.com saw the perfect opportunity to empower customers to take control and pay much more competitively and fairly-priced insurance premiums. “Customers in Singapore can look forward to real positive change when dealing with insurance.” Mr. Byrne says the company’s objective is to change the way people think about insurance. From quotation to buying and making a claim, the company wishes to make the insurance process effortless or their customers. “We know customers want things to be simple and understandable – not documents full of legal ‘mumbo jumbo’ that no one can understand! That is why we have designed all our communication to be jargon free.”

Additionally, the company estimates its car insurance to be 10 percent cheaper on average and it can vary to up to 25 percent less fro privately owned cars and drivers with good driving records. Mr. Thomas Urbanec, chief marketing officer for Prudential Singapore, says that the Internet may be more useful as a research tool to find out more about the insurance products. “Insurance is a complex and high-touch product unlike daily consumer goods which you can easily buy off the shelf or the Internet.” He says. “Professional financial consultants can add value to customers by conducting fact-finding and analysis before providing advice or financial planning. Some customers may also prefer to meet with the financial consultant for face-to-face consultations.” He believes that the Internet works as a “supplementary channel of sales” that is suitable for those who are more financially savvy and value products with simple features.
“More insurers are looking at this direct online insurance and some products have done well via this sales channel. However, this channel may not be suitable for everybody; it also depends on the consumer’s age group, financial knowledge and education level for them to understand the features and suitability for the various types of insurance products.”