Singaporeans secure with their insurers, survey says

72% from 800 respondents in a survey are "very satisfied" and satisfied with the life insurance as a whole.

A recent consumer survey commissioned by the Life Insurance Association reveals that majority of Singapore residents perceive the local insurance industry well and trust the insurance advisors who serve them.

The findings of this study will set a baseline for the LIA to measure the industry’s progress in achieving fair dealing for its customers. The LIA also aims to ascertain consumers’ knowledge, perceptions and attitudes towards insurance products, and better understand the average Singaporean’s interactions with life insurance companies and financial institutions.

The consumer study sought the views of 800 respondents who answered questions focused around Customer, Compensation, Competence and Communication. The study was conducted between November 2011 and January 2012 by Ipsos, an independent market research company. The survey polled 800 Singaporeans and Singapore Permanent Residents who were randomly selected. Respondents had to be decision makers in buying personal financial products and were categorised into two groups:persons who own a life insurance product and have had an insurance advisory review in the past three years and persons who do not own a personal life insurance product but intends to do so in the next three years.

The respondents were also quota-controlled on age, gender and race to ensure that it reflected the nation’s demographics. Door-to-door interviews were carried out using a structured questionnaire in languages of the respondents’ choice  of English, Chinese or Malay. Each face-to-face interview lasted 30 minutes.

Of the respondents interviewed, 72% are “Very Satisfied” and “Satisfied” with the life insurance industry
as a whole.

Three quarters or 76% placed high trust in the overall competency of their advisors. 69% of users relied on only one trusted agent  or someone who represents one insurance company.

77% are aware that their advisors’ remuneration comes from the premiums they pay. 91% consider the current remuneration system reasonable or have no strong feelings about it. 80% stated that financial advice is crucial when they make purchase decisions.

92% of the users who went through a full/partial fact finding session in the past 3 years said they benefited from the fact-finding process which helped their advisors identify their needs better.

Overall, the bulk of Singaporeans and Singapore PRs are satisfied with the life insurance industry and perceive it positively.