The insurtech market in Singapore has been attracting increasing investment in recent years as investors recognise the industry’s potential to disrupt the traditional insurance sector.
One of the main reasons for this increased investment is the strong government support for the insurtech industry in Singapore. The government has launched several initiatives to promote innovation and growth in the sector, including the Singapore FinTech Festival, which features a dedicated insurtech conference. This has helped to create a favourable environment for insurtech companies to thrive.
The Singapore insurtech market size in terms of investment value is expected to grow from US$ 142.07 million in 2024 to US$ 225.08 million by 2029, at a CAGR of 9.64% during the forecast period of 2024-2029, according to Mordor Intelligence. The market is set for significant growth, driven by the rise of innovative products and services catering to evolving consumer demands.
Startups in the Singapore insurtech sector are capitalising on this trend, leveraging digital technologies and adapting their strategies accordingly. The market’s resilience is underscored by its favourable regulatory landscape, while startups showcase their agility by introducing novel solutions to meet evolving consumer needs.
Another factor contributing to the increasing investment in the Singapore insurtech market is the growing demand for digital insurance solutions. Consumers are increasingly looking for more flexible, affordable, and personalised insurance products available online or through mobile apps.
Insurtech companies use cutting-edge digital technologies such as artificial intelligence, machine learning, blockchain, and cloud computing to meet these evolving needs and create innovative products. Investors are also attracted to the potential for insurtech companies to disrupt the traditional insurance business model and create new growth opportunities.
Insurtech firms in Singapore are leveraging new business models such as pay-as-you-go, peer-to-peer, and microinsurance to provide more accessible and affordable insurance solutions to a wider range of customers. Here are 5 innovative insurtech products emanating out of Singapore.
Income Insurance
Income Insurance in Singapore, formerly known as NTUC Income, offers a diverse portfolio of insurance products including life, health, travel, car insurance, and savings and investment plans.
The company has been at the forefront of digital innovation, providing online platforms for customers to easily purchase and manage their insurance policies. This includes a user-friendly website, embedded insurance platform, and mobile app for convenient access to insurance services
One notable insurtech product in Singapore as of 2024 is SNACK by Income. As a microinsurance product designed to integrate seamlessly into users’ daily experiences, it allows to build financial protection and investment incrementally through lifestyle activities.
SNACK enables users to accumulate insurance coverage and investments in small amounts, linked to everyday activities like ordering a meal, exercising, or taking public transport. The app integrates with various lifestyle partners, such as EZ-link, Fitbit, and Burpple, enabling users to stack insurance coverage with their daily activities.
SNACK offers a variety of coverage options, including life, critical illness, accident, travel, home, and even pet insurance, catering to a broad spectrum of needs. Users have the ultimate flexibility in how and when to contribute to their insurance and investments, with the app letting them decide the frequency and triggers for contributions.
Income Insurance is also a social enterprise, and says it is therefore committed to making insurance inclusive and works towards benefiting the wider community in Singapore.
FWD Singapore
In Singapore, the insurtech sector is leveraging artificial intelligence (AI)-driven risk assessment to transform the insurance industry. Companies like FWD Singapore are developing predictive tools that analyse insurance data to offer business insights for submissions profitability, pricing adjustments, and necessary formula changes.
FWD Singapore became the first health insurer in Southeast Asia to deploy Shift Technologies’ FORCE fraud detection solution that uses artificial intelligence to analyse multiple data sources and thereby improve insurers’ claims assessment capabilities by eliminating possible waste and fraudulent claims.
It uses advanced AI and data science to detect potentially fraudulent claims and apply a dynamically generated fraud score for each claim that indicates how suspicious the claim is, contributing factors, and how the claim could be investigated.
By applying this score to the company’s claims, FORCE helps FWD eliminate the issue of fraud, waste and abuse as it relates to straight-through processing, ensuring genuine claimants are paid quickly and accurately.
Singlife
Homegrown insurtech Singlife has partnered with Doctor Anywhere, a local tech-driven healthcare firm, to launch a new health subscription plan aimed at self-employed individuals, including gig workers.
The plan, named DA Healthwise Plus, is designed to provide affordable healthcare options and accident coverage, which has been notably absent for many freelancers and contract workers such as ride-hailing and food delivery drivers. Singlife’s research indicates that a staggering 53% of gig workers lack any form of insurance to protect against accidents and potential income loss.
Members of DA Healthwise Plus benefit from affordable access to general practitioners, with consultations available for S$13 at over 300 partner clinics across Singapore or online through the Doctor Anywhere app.
The plan also includes group personal accident coverage, offering financial protection for unforeseen injuries, with benefits such as daily hospital income of up to S$80 for up to 30 days.
Additionally, members can access specialist video consultations starting at S$70 for a 45-minute session across various disciplines, including cardiology, orthopaedics, paediatrics, obstetrics and gynaecology, mental health therapy, and nutrition & fitness counselling.
Igloo
Igloo is another leading insurtech company in Southeast Asia, known for its innovative insurance technology that aims to make insurance simple, affordable, and accessible. One of their standout products is their Weather Index Insurance, which is particularly innovative due to its use of blockchain technology.
This type of insurance doesn’t follow the traditional indemnity model. Instead, it pays out based on the occurrence of a predefined event, like extreme weather conditions, which can be objectively verified.
The use of blockchain ensures transparency and efficiency in claims management. It allows for faster payouts and reduces the potential for fraud.
By leveraging technology, Igloo is able to offer this product to a wider audience, including those who may not have had access to insurance previously. Weather Index Insurance is designed to be highly customisable, catering to the specific needs of different customers and industries.
bolttech
bolttech is perhaps the most renowned Singapore-based insurtech company that has developed a number of innovative insurance products. One of the more prominent examples is their device protection offering, which provides comprehensive coverage for electronic devices.
bolttech’s device protection product leverages their technology platform to provide mobile device insurance in a fully digital, streamlined way. Key features include instant purchasing of device insurance plans online or via app, without needing to fill out lengthy paper forms. The entire process from quotation to payment to policy issuance is digital.
Fast, easy claims filing are also made possible by simply uploading a photo of the damaged device through bolttech’s app. This removes friction compared to traditional insurance claims processes.
Claims payouts are likewise quick, with approved claims reimbursed within days directly to the customer’s registered bank account. And customers can easily manage their device insurance plans via bolttech’s app and web portal, including viewing policy details and extending coverage.
Featured image credit: Edited from Freepik
