Digital transformation in the insurance industry has arrived later than in sectors like banking and retail, but it is finally picking up momentum in Singapore. The COVID-19 pandemic accelerated this shift. As branch visits became difficult, more consumers turned to online platforms to learn about and purchase insurance. Today, it's not unusual to buy travel or car insurance online without speaking to a human.
But not all insurance products are created equal—and neither is consumer confidence in going fully digital. A recent survey by MoneySmart of 562 Singapore-based respondents reveals that while digital is welcomed for speed and convenience, human advisors still play a key role in more complex insurance decisions and claims.
This article decodes the findings from the survey and explores what they mean for insurers, regulators, and most importantly, policyholders.
Singaporeans have become highly comfortable starting their insurance journey online. The clearest evidence of this is where they get their information. A full 73% of survey respondents said they rely on financial aggregators like MoneySmart to understand products and compare options. That outpaces traditional sources like insurers' websites (56%) and human advisors (50%).
This shift suggests two things: first, consumers value comparative tools and independent explanations more than branded sales materials. Second, insurance is no longer treated as an entirely offline, trust-based service—at least not at the awareness and education stage.
That said, trust still matters. Respondents noted they often validate what they read online with a human advisor before making a decision. While the internet has democratized access to information, it has also increased the volume of conflicting advice. This makes personal verification an important step.
When it comes to actually purchasing insurance, 86% of respondents expressed satisfaction with digital self-service channels. These include platforms where consumers can compare, select, and pay for insurance without speaking to an agent.
However, 91% also said they were satisfied with advisor-assisted purchases. This overlap reveals a powerful insight: most customers are using both channels depending on the complexity of the product. In simpler words, Singaporean consumers are not choosing between digital and human. They want both.
This "phygital" preference (a hybrid of physical and digital) is especially pronounced when insurance products become more complex. Car insurance, which is highly regulated and price-driven, sees more digital purchases. But for hospitalisation insurance or critical illness plans, many consumers still want to speak to someone. The perceived stakes are higher. Missing a clause or misunderstanding a term in a health insurance policy can lead to thousands of dollars in denied claims.
Buying insurance is one thing. Claiming it is quite another. This is where customer confidence in digital solutions falls off sharply.
Survey respondents repeatedly cited frustration and anxiety when navigating self-service claims portals. Even a minor documentation error can result in delays or denials. One respondent summed it up: "A single, wrongly submitted piece of information could cost a lot, so I would rather talk to their people than submit the form myself."
This is where advisors shine. Many act as claim shepherds, ensuring documentation is complete and framed correctly. They also serve as advocates within the insurer's internal processes—something a chatbot or form submission cannot replicate.
Respondents reported higher satisfaction when advisors helped with claims, especially when documentation was complex or ambiguous. One customer noted: "You can chase the agent for anything. For online platforms, I don’t know who to chase when the claims are made."
This gap in post-purchase and post-claim support highlights the limits of a digital-only model in insurance.
The survey categorized four types of insurance products by complexity: car, critical illness, home contents, and hospitalisation. The complexity ranking matters because it correlates directly with the consumer’s willingness to go digital.
Car Insurance (Least Complex)
Car insurance in Singapore is mandatory, standardized, and relatively simple to compare. It is no surprise that most customers prefer to buy and even claim digitally. 73% of car insurance buyers said they focused on finding the "best" insurer, and most used aggregator sites to do so. The claims process is also highly structured, with predefined repair networks and clear accident reporting protocols.
Critical Illness Insurance (Less Complex)
Critical illness insurance occupies a middle ground. It is more complex than car insurance due to underwriting and definition differences, but still digestible via digital means. 63% of respondents were happy to buy critical illness coverage online. But 71% preferred using an advisor when filing a claim. This gap underscores that digital works for purchase, not for problems.
Home Contents Insurance (More Complex)
This category surprised many. Home contents insurance is perceived as more complex because the value of the items insured can vary widely. One person may insure $1,000 worth of electronics; another may want to cover rare collectibles or home office equipment. This perceived subjectivity leads consumers to lean on advisors for both purchase and claims. 68% of respondents said they preferred advisors when claiming on home contents insurance, citing the need to prove value and ownership.
Hospitalisation insurance represents the most complex and emotionally loaded category. It intersects with Singapore’s broader healthcare financing framework—MediShield Life, Integrated Shield Plans, cash riders, and employer-sponsored plans.
The terminology alone is enough to warrant guidance. Unsurprisingly, 74% of respondents preferred to claim hospitalisation insurance through an advisor. Understanding whether a procedure is pre-approved, whether coverage includes certain specialists, and whether bills are reimbursable or cashless can feel overwhelming. Advisors help bridge this gap.
The survey data highlights several unmet needs in digital insurance experiences:
- Lack of clarity in self-serve claim forms
- No human point of contact post-purchase
- Insufficient guidance for policy overlaps (e.g. MediShield Life vs. private Shield plans)
- No consolidated view of all policies for a household
These limitations show that while insurers may have invested in e-commerce capabilities, many have under-invested in post-sale digital infrastructure. Customers don’t just want to buy online—they want to manage, track, and clarify their coverage online too.
The future of insurance in Singapore is not purely digital, nor purely human. It is designed integration. Insurers must rethink how they support customers across the entire policy lifecycle. Here are three strategic opportunities:
1. Enhance Digital Transparency
Insurer websites must evolve from sales brochures into educational platforms. Key features should include:
- Summary tables of coverage and exclusions
- Real-world claim examples
- Interactive policy explainer tools
Making exclusions easy to find is not a liability—it's a trust-building measure.
2. Build Human-Digital Escalation Paths
Rather than forcing customers to choose between DIY and full advisory, offer hybrid options:
- Chatbots with human handover triggers
- Live advisor chat during purchase or claim
- Claim submission portals with real-time feedback
These upgrades improve trust and reduce drop-off at moments of uncertainty.
3. Design for Family and Lifecycle Needs
Most individuals own more than one insurance policy. Families may have plans across multiple providers. A consolidated digital dashboard would allow users to:
- View all active plans and premiums
- Set claim alerts and renewal reminders
- Link dependents and household-level policies
Insurers that offer this visibility will earn longer-term customer retention.
Singapore's insurance sector is not siloed. It interacts closely with CPF-linked healthcare schemes, tax incentives, and employer-based protection. As digital platforms evolve, so too must the regulatory frameworks. MAS and CPF Board could play a role in:
- Encouraging data portability between insurers
- Standardizing digital claims APIs
- Supporting shared dashboards for CPF-linked and private plans
Such coordination would help Singaporeans better understand the full picture of their protection, especially during life transitions such as job changes, parenthood, or retirement.
Singaporeans are not rejecting digital insurance. In fact, they are adopting it quickly for simpler products. But when the product stakes rise, or when a claim is on the line, they still turn to human advisors. The insurance sector’s challenge is no longer to digitize transactions—it is to humanize digital interactions. That means redesigning digital journeys not just for purchase speed, but for claim clarity, emotional reassurance, and policy understanding.
So what does this mean for you as a policyholder?
If you’re buying insurance, start online—but don't stop there. Use digital tools to compare and learn, but validate with a licensed advisor when in doubt. And if you’re making a claim, remember that the most expensive mistake may not be under-insurance—but misfiling. Digital convenience is here to stay. But when your health or finances are at risk, human guidance remains invaluable. Because in Singapore's digital insurance journey, the question is no longer "bots or bodies?" It's how well the two work together when it matters most.
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