“But there cannot be a total replacement by going online since complex financial solutions require a tailored result from a qualified and regulated adviser. Just because I can google medical information doesn’t mean I’m going to take my appendix out myself.”
Purely informative
Meanwhile, the new portal Comparefirst allows consumers to quickly compare the premiums and features of similar life insurance products to help them make informed decisions about which policy to buy and how much coverage to get.
As the portal is purely informative, customers will still need to speak to their financial adviser or the life company to purchase the product.
The interactive tool is a collaborative effort by the Consumers Association of Singapore, MAS, Singapore’s Life Insurance Association, and MoneySense.
“Another avenue”
Earlier this week, Manulife Singapore announced it is launching two new direct purchase products.
Hitesh Shah, chief marketing officer of Manulife’s Singapore-based arm, said the firm is supportive of the direct channel which “will offer another avenue for people to access insurance products and provides additional choice for self-directed and knowledgeable consumers who know exactly what they are looking for”.
However, he said experience from other markets has shown that direct insurance sales usually only takes up only a small share of the market.
“Given the complexity and level of customisation in life insurance, we believe most consumers still value the expertise of an experienced financial planner in helping them to make important long-term financial decisions about their future,” he said.
“Most importantly, consumers need to ensure that they have sufficient coverage to meet their needs, as research shows that there is still a significant protection gap in Singapore.”
