AIA Singapore has launched an initiative to help customers better understand their insurance policies, improve their financial literacy in a continued bid to bridge the nation’s protection gap.
Through the initiative, AIA hopes to encourage more Singaporeans to attain adequate protection.
According to an AIA Singapore study, two in five or more than 40% of customers lack knowledge about their insurance policies.
The survey also found that the majority of customers are most likely to only skim read their policy documents.
Customers’ top three reasons for skimming or not reading their policy documents are: the information is difficult to understand, lack of time for a more thorough read, and ease of tapping into their insurance representatives for advice.
AIA Singapore’s initiative is set against the backdrop of significant protection gaps in the country. There exists a 74% gap in critical illness protection and 21% gap in mortality protection, according to the 2022 Protection Gap Study by the Life Insurance Association, Singapore.
Irma Hadikusuma, chief marketing and proposition officer AIA Singapore said: “Minimising jargon in our policy documents and simplifying them will enable everyone to better understand what their policies cover and don’t cover, allowing them to identify their protection gaps.
“Enhancing financial literacy and holistic wellness can go a long way with clear communication, and we hope this initiative serves as an effective step in that direction”
“Compared to more mature generations, younger consumers tend to be more active online.
“In fact, our study found that over half of them are likely to explore digital touchpoints to expand their knowledge about insurance.
“Alongside our efforts to continuously enhance the skills and competencies of our insurance representatives, this initiative serves as an avenue for us to enable our customers to proactively protect themselves against financial uncertainties — especially amid rising costs of living and healthcare”.
