The Insurance Aggregator in Singapore – Solution Providers
Article Synopsis :
Digitisation is gaining ground as a long term solution for the problems that plague the insurance sector. Insurers have traditionally relied on hard selling techniques leading to sale of poor and unsuitable products at times. Insurance aggregators’ value proposition for customers is to offer convenience ad choice usually in the form of immediate price and benefit discovery.
Solution Providers Management Consulting report, “The Insurance Aggregator Impact and Viability in Singapore” collates the views and expectations of industry leaders of Singapore on the insurance aggregator business model. The white paper addresses the aggregator’s impact and viability in Singapore and explores how both the aggregator and insurers can adapt to create value for consumers and the industry.
As per the report sustainability of aggregators will depend on three critical factors:
• Critical Mass
• Revenue impact on insurers
• Distribution cost
• Technology and Operations Readiness
2. Value Chain Integration
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Digital Insurer's CommentsThe concluding remarks of the report rightly points out, “A collaborative approach between the aggregator and insurers makes the aggregator a viable reality” and in order to be successful, an aggregator will have to add value to both, the customer and the insurer at the same time.
Web aggregators have been quite successful in developed markets, but trust will be a critical factor in the success and viability of aggregators in Asian region. Customers will not believe the data provided by web aggregators as they will have their own biases.
The FAIR review which mandates a state/industry sponsored aggregator for life insurance will be an interesting pilot.
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