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More than 2 in 4 consumers prefer to deal with a single insurance provider
They demand streamlined way to buy insurance.
On average, consumers in Singapore have three different insurance products split across three providers. A study conducted by Collinson Group revealed that 55% of these consumers prefer to deal with a single insurance provider.
When asked why they would prefer insurance products with a single provider, 86% cited convenience, 44% of those surveyed 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.
Meanwhile close to half said their provider doesn’t offer different products, and almost a third said they don’t feel there is any benefit for staying loyal when asked why they use multiple providers.
Collinson Group director of Market Development Chris Rogers said banks can capitalise on this opportunity by offering insurance products through loyalty initiatives, or value-added packaged accounts and credit cards.
“Banks have an opportunity to boost loyalty and make consumer’s lives easier by including insurance products in loyalty programmes or within packaged accounts and credit cards. Given the data banks hold on consumer spending, using this information at the right time to offer highly personalised, timely and relevant insurance products would be valued by customers and can also generate incremental revenue for banks," he said.
He noted that banks can achieve economies of scale to deliver value across insurance products and pass this back to their customers due to their substantial buying power.
"They can offer insurances at the low prices their customers expect due to a group risk approach, packaged as part of a bank account or credit card. This will provide differentiation and builds on or leverages existing loyalty to the bank’s core products –bank accounts or credit cards," Rogers argued.
He furthered, "With effective integration, banks could offer travel insurance to a customer that has just booked a flight, or car insurance when they buy a new car. This will be well received by customers who indicate in the research that relevant offers are welcome, and by consumers that like the idea of a ‘one stop shop’ but need to feel that the provider offers great value and quality products."
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