Eighty-three per cent of Singaporean digital bank customers would be interested in receiving embedded insurance offers based on their transaction data. The Straits Times photo: Lim Yaohui
SINGAPORE: Insurance companies are increasingly looking at customisable solutions amid the rise in popularity of embedded insurance, which are products customers secure as protection for specific transactions.
One example would be AppleCare, where customers can opt to pay an additional premium in order to get coverage for the products they are purchasing.
A survey by embedded insurance company Cover Genius conducted in 2021 showed that 83% of Singaporean digital bank customers would be highly interested in receiving embedded insurance offers based on their transaction data, with 58% citing “convenience” as the primary driver for their interest.
The firm offers protection for consumers of digital companies such as Turkish Airlines, Ryanair and Booking Holdings, which owns brands including Booking.com.
Shinichi Kamiya, associate professor in the division of banking and finance at Nanyang Business School at Nanyang Technological University, said embedded insurance adopts targeted distribution and leverages existing distribution channels. — The Straits Times/ANN
