Majority of Singaporeans Now Purchase Travel Insurance Through Digital Channels & Favor 'Metered' Policies, KoverNow Survey Finds

New data from NUS and KoverNow confirms attitudes and preferences towards insurance across all demographics in Singapore is digitally focused

SINGAPORE, March 12, 2024 /PRNewswire/ -- KoverNow, the popular digital insurance platform, has revealed the results of a new survey, conducted in co-operation with the National University of Singapore, into the attitudes and behaviour of smartphone users towards the purchasing of insurance products and services. The survey, which was carried out amongst 500 Singaporeans, shows a strong demand for travel insurance across all age groups, a preference to use digital channels when selecting and buying policies and an inclination toward 'metered' policies that can be turned on and off on demand.

Irrespective of income, 64% of all respondents said that they had previously bought travel insurance and plan to purchase it in the future. 43.7% travel 2-3 times a year and of this group a huge 91% said that they would buy travel insurance in the future. 28% travel more than 3 times annually, of which 84% currently own, or have previously bought, travel insurance. Only 1.5% have never bought a policy to protect them while travelling.

Purchasing preferences

While 53.4% of all respondents have used an online website for purchasing insurance, 11.8% have used a mobile app. A third (33%) said they had previously used a non-digital channel, such as a financial agent, or a broker, as their preferred channel, but only 8% had used a landline phone. Among those that travel 2-3 times a year, just 5.8% chose a non-digital channel as their preference.

The majority (70%) of the respondents in the survey were between 22 and 40 years old, and 30% were aged between 40 and 60. When asked for their views on mobile insurance apps, 38.2% of the 56-60 age group – which accounted for 11% of respondents – ranked their level of comfort with mobile applications at 2 (with 1 being most comfortable and 5 being least comfortable); 31.7% of 22-25 year olds said the same, as did 31% of 41-45 year olds. Among the younger age group, 95% were comfortable overall with purchasing insurance using an app. This finding reflects the results of a 2021 KoverNow survey of Millennials in Singapore which showed that they would be open to using a mobile app to purchase insurance. It is also reflective of the rapid hockey stick adoption rate for apps among Gen Z consumers.

The top five most important factors for Singaporeans when choosing a channel to buy insurance are: personalisation; brand reputation; clearly presented products and services; the provider being available where the customer is; and prompt service. The least important aspect is the removal of human interaction.

Policy preferences

The KoverNow research also asked respondents for their attitudes to policy features. Across all age groups, 79.6% said they thought it was important to have 'metered' insurance that could be turned on and off on demand. When asked about the ability to value an item as an additional service, 45.3% said it was very, or quite important. Premium affordability and coverage, however, is the most important priority.

Stephan Kaiser, CEO at KoverNow, said: "Singaporeans love to travel, and believe in the importance of insurance to protect themselves and their valuables. The sentiments expressed in the survey can be seen in the attitudes of our own customers, who use the KoverNow app to ensure they purchase both travel cover and dedicated items in one easy transaction. We also now clearly see the tip of the iceberg in consumer preferences entering the market through Gen Z customers who won't even consider non-digital supply channels ... which is a clarion call to the entire insurance industry."

The research was carried out by Business Undergraduates at the National University of Singapore in November and December 2023 among legal residents of Singapore.

About KoverNow 

KoverNow is headquartered in Singapore, at the centre of its core markets in Asia Pacific. The company's digitally enabled insurance platform dramatically improves the customer journey for purchasing and managing different types of personal insurance by streamlining processes and speeding up renewals, approvals and claims. The KoverNow platform can achieve these efficiency gains whilst providing transparency, speed and value to existing ecosystems, channel partners and policy holders. KoverNow's insurance platform provides features and functionality that reflect changing consumer behaviours, such as greater control, flexibility and convenience in a truly mobile format. 

Logo: https://mma.prnewswire.com/media/2359543/KoverNow_Logo.jpg

SOURCE KoverNow