This paper uses both quantitative and qualitative methods as
each research method has its own weaknesses and is somewhat compensated by the
other (Steckler A., et al, 1992). Quantitative data tends to be factual and if
enough numbers obtained, fairly representative of the population of which it
samples. It is used in this report to obtain information on consumer behaviour
and attitude towards insurance purchases and their agent if they have one.
Qualitative methods on the other hand sample a relatively smaller number of
participants as compared to quantitative; however it delves into the minds of
selected participants for deeper perspectives. Thus the selection of candidates
for qualitative research is of paramount importance and critical to its
success. In this report, leading industry professionals are interviewed for
their authoritative views of the research topics. Data from both methods may be
viewed as complementary (Jick T.D., 1979) and may then even allow for contrast
and comparison. There could also be unexpected uses uncovered when using
multi-methods research (Bryman A., 2006)
This paper aims to answer the following hypotheses:
‘Simpler’ general insurance products like motor, travel,
home, etc. will see increased traction towards online purchase instead of via
an agent.
The agent is preferred especially for complex products
that require financial needs analysis.
Most Singaporeans value quality advice over price
discounts when it comes to insurance
Despite online purchase options, the agent is still
relevant and important
People who are satisfied with their agent are less
likely to buy online
There is a functional relationship between demographics
and the perceived value of an agent
Technological Disruption in the Insurance Industry
In the earlier years of the internet, the practice of
purchasing financial products online was slow to take off due largely to
concerns of risk and security (Gerrard et al, 2006). Some were early adopters
but others decided to wait and see, depending on each individual’s personal
risk perception (Walker and Johnson, 2005, 2006).
As technology developed and internet security improved, new
distribution platforms were developed despite initial impediments (Dabholkar
and Sheng, 2012), together with new products designed for these platforms
(Sousa and Voss, 2009). Despite each platform having its own set of
characteristics (Laukkanen, 2007), they have completely altered the way that
customers engage with the companies (Patricio et al, 2003) and the relationship
between them (Black et al, 2002).
Today, the industrial revolution of the digital age is
underway and InsurTech (Insurance Technology) companies have set their sights
on the 300-year-old insurance industry. Such technology companies
have sprung up globally, disrupting the way things have been
done. The emerging technologies, together with customers’ expectations, are
causing the insurance industry to consolidate (PWC, 2018). Insurers used to be
working in isolation with few partners outside of the industry; today the
insurer that wants to stay relevant has to work in a complex partnership with
companies from various industries to provide a total customer experience
(Cebulsky M. et al, 2018).
In Singapore, the Monetary Authority of Singapore (MAS) is
the central bank and financial regulatory authority. With the advances in
technology and online security, MAS has embraced these changes and introduced a
FinTech Regulatory Sandbox (Fan P.S., 2017) to encourage innovation and
experimentation of new applications for the financial industry. This ‘balanced
approach’ allows FinTech providers to operate with relaxed regulations in a
controlled environment instead of the ‘real-world’ where more stringent rules.
This allows for creativity but ensures financial stability and consumer
protection.
From the early days, the insurance industry has been based
on a personal interaction ‘hi-touch’ model (Gera R, 2011). Insurance agents
(also called other names: Advisers, Consultants, Planners, etc.) are the major
distribution channel and often the main point of interaction between the
insurance company and the customer (Crosby et al, 1990). In recent years,
however, multiple alternative distribution channels have emerged due to intense
competition, the availability of applicable technology and the need to retain
customers and reduce costs (Jeyakumar N., 2017). One of such channels is
‘Digital to Customer’, where selected insurance plans are made available for
online purchase online via a mobile phone application.
In the initial years of the digital revolution, many
InsurTech companies set their sights to disrupt the traditional players of the
insurance industry. This has shifted gradually to collaboration; the technology
players have begun to see more benefits to work alongside the incumbents rather
than to go it alone in a ‘David versus Goliath’ fight. Instead of disruption,
InsurTech companies look to complement and enhance the insurance companies’
operations from securing transactions, improving efficiency and reducing
operating costs. Other InsurTech companies offer software that complements the
practitioners’ work such as Customer Relationship Management (CRM) and complex
modelling for individual analysis of financial needs.
Perhaps one of the greatest benefits from these recent
advancements in financial technology is inclusion. Using recent estimates,
there are almost 2 billion people living in poverty and some 200 million
‘micro’ small and medium enterprises (SMEs). These segments were previously
marginalised and do not have financial products readily available to them. With
high smartphone usage even in developing countries, financial services can now
be made available and affordable to these groups and potentially reducing
poverty with economic growth (Soriano M.D., 2018).
The insurance industry has been existent since classical
times and was well established around the 17th century. The majority of
policies were sold via intermediaries (insurance agents) as they may not be
easily understood by the public and highly intangible (Durvasula et al., 2004;
Tsoukatos and Rand, 2006), and these agents are typically the customers’ only
contact point with the insurance company (Crosby et al., 1990).
The cost of sale of an insurance policy is typically steep
and recoverable only after the policyholder has paid 3-4 years’ premiums
(Zeithaml et al, 1996). Thus it is imperative that customer retention and
satisfaction remains high, not just for distribution cost recovery; high
customer loyalty leads to opportunities to up and cross-sell (Lombardi, 2005),
increased referrals, and better overall financial performance (Moore and
Santomero, 1999. Diacon and O’Brien, 2002).
To achieve higher customer retention, quality service
levels, relationship, advice and integrity of the agent (Toran, 1993) are
critical factors (Slattery, 1989). Personal interactions with their insurance
agent and insurance service staff perception make up critical components of
brand loyalty (Soloman et al, 1985. Gro¨nroos, 1990).
Agent – Customer – Insurer Literature Map
There are 2 journals with relevant cases studies worth
analysing. Both were done in Europe; one in Ireland and the other in Italy.
Irish Case Study
A study was done in Ireland by O'Loughlin,
D. and Szmigin, I. in 2005. Their paper titled ‘Customer perspectives on the
role and importance of branding in Irish retail financial services’ explores
the customers’ perception of the functional and emotional factors when making a
financial services purchase. Although the research findings indicate that
consumers in Ireland place more emphasis on functional values, the researchers
highlight a lack of differentiation in the services and rates offered. Instead
of using emotional advertising messages, financial companies could add value by
focusing on the ‘people-based process’; providing superior advice, expertise,
service quality and flexibility.
Mediterranean (Italy) Case Study
Another
similar study was conducted by Petruzzellis, L., Romanazzi, S. and Tassiello,
V., 2011 titled, ‘Branding relationships in financial services: a Paradigm
shift in Mediterranean countries.’ Despite the availability of other channels,
Italians have a closer relationship with their financial services staff as
compared to the Irish; human interaction, familiarity and personable service
are much highly valued and feature strongly in the decision making process.
Amazingly, statistics from the Bank of Italy in 2017 shows that 40% of Italians
do not use online banking (Banca D’Italia official statistics website, 2017)
with many preferring to visit the bank.
These case studies illustrate that while functional values
are on the mind of the Irish consumer more than the Italian, it is still
beneficial for the company to focus on the service process. This is especially
so when the perceived risk of the product is higher; in such a situation, trust
in the brand and the advice of financial service staff is highly valued (Gill,
2008).
What about Singapore?
It is interesting to note that although both Ireland and
Italy are in Europe, the attitude towards financial services decision-making
show marked differences. This may be attributed to each country’s cultural
differences and practices. Culture is usually defined as a set of values,
norms, behaviour, etc. that is peculiar to a country, society, or group and
differentiate it from another (De Mooij, 2013. Giddens et al, 2016). These are
usually formed through socialisation (Ghemawat and Reiche, 2016) and influenced
by tastes, preferences and religion (Cohen and Varnum, 2016).
How will the Singaporean consumer attitude towards financial
services compare? Against the other 2 countries, Singapore is a young nation
(gained independence 1960s) with a diverse mix of people (Chinese 77%, Malays
15%, Indians 6%, Others 2%).
Hofstede Cultural Comparison for Ireland, Italy &
Singapore
From Figure 2c, we can see marked differences in some of the
dimensions. In Power Distance which marks social inequality and relationship
with authority (Bian and Forsythe, 2012), Singaporeans are the most accepting
of uneven power distribution in society and organisations (Hofstede, 1980b;
Hofstede and Minkov, 2010). Even more remarkable are the gulfs in the
dimensions of Individualism and uncertainty avoidance; Singaporeans abide by
rules for nearly everything in life!
Will the combination of high power distance, collectivism
and need for structure see the Singaporean consumer ‘give face’ and respect the
advice of their insurance agent? Or will the thriftiness and eye for a bargain
drive the Singaporean to online insurance channels to save on cost?
In order to spend less on your auto insurance, property
insurance, life insurance policy or another type of insurance that is available
in the industry today, there are a number of things that you can do. It is
necessary to know about the do's and dont's for you to get cheap insurance
rates from among the best providers available on the market. So, it is very
important that everyone does their research well ahead of time before making an
investment. In particular so, if you're planning to get the cheapest rate
possible when another policy term comes effective. Having this in mind, listed
below are a few tips that you can share with other people who have the same or
similar goals and objectives.
Shop Around for the very best Insurance Companies
One of the first steps in looking for the best insurance
rates is searching for the most beneficial insurance providers in the industry.
This action doesn't have to be complex as there are a variety of websites that
will provide the consumer with this kind of info. From reviewing websites that
list the top ten insurance companies on the market to checking a number of
different official sites to see what products they are offering, there is a lot
of great info online that people have access to today.
Alongside reviewing internet based insurance quotes, another
excellent way to find the best insurance firms is usually to network. Some of
these networks may be within one's family, on the job, social setting and among
friends. There are several means now available that people might use to discover
the information that they would need. For instance, when someone likes their
own insurance firms, they are surely very willing to share what they have
learned over time. So, they can point those who are on the lookout for good
insurance coverage at an affordable rate in the right direction.
Contrast Insurance rates from Different Companies
Once it is time for an insurance plan to get renewed, the
majority of folks are likely to settle for the new rates that they're given
without asking any questions. Even if the new rate could be the best rate that
they may find, a lot of people do not take some time from their schedules to
look for a better rate. Sadly, this is not always the most suitable practice
for people that actually want to save money on their family's budget. In truth,
it is within this period that individuals have a chance to reduce their monthly
expenses quite significantly. To illustrate, once the new policy renewal comes
in, among the first things that every individual requires to do is begin looking
around for multiple quotes. A lot of people highly recommend securing a minimum
of three insurance quotes from multiple providers to compare. Before you start
this process, however, it is very important for everyone to remember that these
insurance quotes can only be compared accurately when the features of the
insurance plan are the same. Meaning if the individual is aiming to secure a
quotation for an auto insurance policy, they have to request the exact
deductible amounts from each company in order that computations will be
identical. If that recommendation is not followed, the best rate could be based
of lesser coverage.
Go for a Lower Insurance deductible When Inquiring about
Insurance Quotations
In addition to comparing quotations from multiple
organizations, another wise way of managing monthly insurance payments is to
choose lower deductibles. Lower deductibles will automatically lower the value
that individuals are required to pay each and every month. However, before
these amounts are changed significantly, it is necessary for the covered person
to know that this amount comes out of the pocket first whenever a claim has to
be filed. So, it is very important for individuals to take into consideration
their insurance deductibles very carefully prior to signing the documents.
Inquire about Insurance Quotes Discount rates that Policy
owners Qualify for
The insurance coverage rates for policy holders can vary
greatly from one to another. This is because the amounts for each person can
differ dependent on several types of discounts. One of these may involve buying
multiple type of insurance policy from the same company. Because insurance
companies are attempting to get as much business from the customers as they
possibly can, such a discount may be a win win for both the client and the
insurance provider. Another common discount that some people may or may not be
familiar with is discounts for those who take defensive driving courses in case
of automotive insurance. The reason being these programs teach their students
how to make good driving decisions, as well as avoiding accidents. Each
discount can help to lower the payments a bit or a lot so it's essential for
individuals ask about every type of discount offered, especially if they need
to get the maximum benefits.
Conclusion
If you are thinking to invest in a fresh insurance policy
for one's vehicle, home or other items, you can acquire the ideal rates
possible by looking around in advance. Even in the event the insurance policy
comes up for renewal, it's a sound practice to revisit the insurance policy
rates so that you can still get the ideal deals. Furthermore it is worth noting
that many professionals in the industry can offer great ways to get one of the
best quotes. Several of which includes, obtaining multiples quotes from
different companies, choosing lower deductibles, and asking about additional
discounts.
Lets say you just can't get satisfaction out of your current
insurance provider?
I understand how hard it could be to attempt to find the
right insurance provider you need, but if you want to really look for the best
out of insurance companies, you will need to discover tactics that work
amazingly well. These tactics are simple to grab and do not take a lot of your
time. You can discover methods to decrease your insurance premiums in this
article here: Insurance quotations
Don't give up hope, it's NOT impossible. Get more ways of
getting cheap insurance for teen drivers by clicking the link.
In fact, no matter if you have been in business for quite
some time, or you are new to the real estate industry, the risks you face
daily, from errors in closing costs and payoff amounts to failing to meet
client expectations, make you a major target for lawsuits. Even if you are
cleared of all claims, the fees spent on defense, the time spent away from your
business, and the added stress of dealing with the situation can prove costly.
Without the right coverages, real estate agents may put their professional and
financial future on the line.
Also, it is the title industry's role to safeguard the
client's escrow and other funds by providing a means for the secure transfer of
their real estate in the industry. If an error or breach occurs during this
transaction, the agent is held accountable for damages incurred resulting from
the error or breach.
Title Agents Errors and Omissions Insurance protects title
agencies, including the escrow agent, closing cost agent, title searcher, and
more, against the impact of a lawsuit incurred as a result of title agents
omissions and errors and fraudulent wire activities.
This insurance covers all costs suffered as a result of an
emerging lawsuit claiming alleged errors in the title documentation process,
including title searches and escrow. Under this coverage, the insured is
compensated in the event of final settlement up to the policy limit, as well as
compensation for defense costs.
Title Agents Errors and Omissions Insurance Under the
Fidelity-Pak Program
Title Agents Errors and Omissions Insurance Coverage under
the Fidelity-Pak Program provides a wide range of comprehensive errors and
omission coverage for real estate title agents, including:
Claims related to defect or deficiency coverage
Sometimes the real estate process can become damaged due to
a defective or unmarketable title, also known as a title defect, which means
there is an omission, error, or other complication related to the ownership of
the property that makes it unsuitable for sale to a valid buyer.
Typically, as part of the settlement process under a
contract of title, the buyer will pay the title company or attorney to search
the title to the property to ensure the seller has a valid and marketable title
to transfer without title defects to protect the buyer's right to the property.
However, sometimes important details related to the property are not recorded
in state and county records, which prevents certain information from being
known, which puts the agent at risk.
The claims related to defect or deficiency insurance covers
claims related to defect or deficiency claims resulting from a deficiency or
defect not recorded in public.
Consumer Financial Protection Bureau Matters (CFB) Coverage
The Consumer Financial Protection Bureau protects consumers
from abrasive, unfair, or deceptive practices and takes action against
businesses that break the law, such as predatory lending.
If a consumer files a complaint against your company with
the CFPB, and upon investigation, the CFPB decides that your company has indeed
violated federal consumer financial laws, it could result in a court
proceeding.
The Consumer Financial Protection Bureau Matters Coverage
assists with costs incurred as a result of Consumer Financial Protection Bureau
matters. Under this coverage, Insureds receive up to $150,000 sub-limit
coverage for relevant attorneys' fees, costs, and expenses, including civil
investigation, hearing, subpoena, or civil action conducted or received by the
CFPB.
Claims Caused by Independent Contractors
The claims caused by independent contractors insurance
covers Insureds against a claim caused by independent contractors.
Occasionally, you may need to hire an independent contractor
to assist you in your real estate business. During these times, it is important
to verify that the contractor is covered by insurance, which will cover damages
if the contractor's errors or accident causes damage.
Prior Acts Coverage
Title Agents Errors and Omissions Insurance covers prior
acts coverage is a feature of liability policies that extends the coverage of
insurable occurrences to dates before the purchase of the policy. In other
words, it covers the time between when services are provided and when claims
are filed as a result of those services. Under this coverage, all claims caused
by wrongful acts following the retroactive date and before the end of the
policy period are covered.
Fraudulent Email Wire Transfer Coverage (Third Party)
Under the Fraudulent Email Wire Transfer Coverage,
compensation is paid on behalf of the Insured, those sums insured become
legally obligated to pay up to $1 m for a covered loss as a result of an employee
transferring escrow funds from an account of the Insured in dependence upon
fraudulent email instructions relieved from a criminal claiming to be a lawful
party to the transaction.
For more information on Title Agents Errors and Omissions
Insurance, contact Riebling Insurance Agency, a leading commercial insurance
firm specializing in Title Agent E&O insurance for both small and large
companies, at RieblingInsurance.com
The United States Government has been presenting several
schemes and plans to help the American residents enjoy health insurance
benefits to the fullest. "Obamacare" is one such scheme that provides
health insurance facilities for both the high-income and low-income groups in
America. However, a report from a Washington D.C. firm, named Avalere Health,
reveals that the price for one of the plans in Obamacare, called the silver
plan, will rise to about 34% in 2018. The silver plan provides a decent
coverage policy and is a bit high on the monthly premiums. For those who cannot
afford to pay such high premiums; they need not worry, as there are policies
besides this and a subsidy scheme, which will provide health insurance at low
cost.
While shopping for cheap health insurance plans, one should
have sound knowledge about health insurance policies. Senior Vice President of
Advisor Services at Manning & Napier, Shelby George advises the shoppers to
always look for how much coverage is provided for the costs a company provides.
In other words, one should not get carried away by the cheap rates, but should
rather focus on how much coverage the insurance companies are providing for
those cheap rates they advertise.
In order to get best cheap health insurance, here is an
explanation of the different policies available and a description of, whether
one can get insurance for "free".
Subsidies and other Health Insurance Plans:
With an aim to provide all Americans with Health Insurance
coverage, one of the many useful plans proposed by the Government, is that of
'subsidies'. A subsidy, in simple words, is the amount paid by the Government
to the insurance companies to provide health insurance facilities to those with
low incomes. This means that people falling into the low-income group will be
able to enjoy health insurance benefits through the use of subsidies, which
would otherwise be rejected by insurance companies on any other short-term
policy claim.
An individual who earns about $48,000 and a family of 4,
which earns somewhere less than $98,000 are those who can enjoy the benefits of
subsidies. Hence, people with low incomes can enjoy good cheap health insurance
with the help of subsidies. However, these subsidy schemes proposed by the
Obamacare plan are more likely to be altered or eliminated on the whole by the
Trump administration.
Talking about other health insurance plans, a silver plan
will cover up to 70% of a person's health care charges while a bronze plan will
cover up to 60% of the costs and the remaining percentage of charges will have
to be paid out of the person's pockets. Now, comparing these two plans, if one
wishes to spend absolutely NO money out of one's pockets, then choosing a
bronze plan along with a subsidy will be of great help. For those who cannot
afford to pay out of one's own pockets, the bronze plan coverage of 60% along
with the remaining 40% covered by subsidies will help to enjoy cheap health
insurance.
What Type of Policy One Can Choose?
The first step to get hold of the best cheap health
insurance is to be aware of what policy suits one's needs. Here is a list of
two options explained briefly, so that one can choose the best fit.
1. Short-Term Policy:
A short-term policy is for those
people, who do not qualify to avail subsidies. In other words, people for whom
it becomes 'unaffordable' to get health insurance are advised to choose this
policy. Here the term 'unaffordable' is described as the cost that exceeds
above 8% of an individual or a family's annual income. According to, Nate
Purpura, the Vice President of Consumer Affairs (ehealth.com), individuals
whose income ranges from $49,000 to $69,000 and families that earn somewhere
between $99,000 and $129,000, are supposed to go for short-term policies.
Hence, if one finds it difficult to pay expensive premiums
and avail health insurance, then going for the short-term policy is highly
recommended. However, there are no penalties if one doesn't wish to have any
health insurance. But, on a positive note, it is beneficial for the individuals
themselves, if they have some financial protection that will be of benefit in
unfriendly circumstances.
Here are a few noteworthy details about short-term policies:
These policies usually last up to 3 months and can be
extended till 9 months (in 3-month period renewal).
According to the new rules proposed by President Trump,
having a short-term policy will be mandatory for all individuals. However, this
rule has not yet been passed, but will soon be in effect.
These policies do not provide coverage for pre-existing
illnesses, i.e. diseases that one is suffering from, before applying for the
policy.
If at all one wishes to include such pre-existing illnesses
in the coverage plan, then the premiums will increase substantially.
Unlike Obamacare schemes, short-term policies will not cover
charges for maternal care, injuries due to abuse, and mental health treatment.
On having a short-term policy, one can avail decent health
care facilities at about $100 premium a month.
On an overall basis, despite the low coverage options it
provides, those who are looking for cheap health insurance for individual or
cheap health insurance for families, can avail great benefits from this policy.
2. Combined Policy or Combo of Policies:
Traditional policies or in other words plans with higher
premiums will provide coverage for all the expensive hospital bills in case of
risky illnesses or accidents. Whereas, choosing short-term plans will simply
cover the normal doctor-visits. But if one wishes to avail the benefits of both
the policies, i.e. get coverage for risky illnesses as well as for normal or
routine sickness (like a cough, cold, fever), then insurance companies these
days are offering combo packages.
In the recent past, people used to apply for both policies
separately in order to avail coverage in both cases. This was getting difficult
for the insurers to calculate different percentages and amounts; hence the plan
for combo policies came up, allowing people to avail both benefits within a
single policy. However, as evident as it seems, going for these policies will
definitely cause one to pay premiums higher than usual.
So a gist of all the above-discussed points is that one
should not always get attracted by offers that merely advertise of providing
cheap health insurance for individuals, instead one should look for the quality
of coverage they provide for the cheap insurance rates. Shopping for health
insurance also requires thorough research and study, just like any other
insurance policies. Since this is an issue concerning one's health; it is
nowhere worthy to just be worried about money. Quality service always comes at
pay hence one should be wise enough to search for policies that provide
affordable and quality health insurance plans.
Having basic insurance coverage is essential. If you don't
apply for insurance, know that it will be a big mistake. Therefore, you may
want to have enough coverage to meet your needs. Also, it's important that you
realize the importance of insurance. Given below are a few common mistakes that
you may want to avoid when it comes to buying insurance.
Ignoring the Importance of Basic Insurance
You must have at least basic insurance. For instance, it can
protect you in case of car theft and accidents. In addition, basic health
insurance can help you save on your medical bills. If you can't go for a
comprehensive policy, make sure you get a catastrophic or deductible plan.
According to the Affordable Care Act, you must have health
insurance. Otherwise, you may have to face fines at the time of filing your
taxes. The health plan you opt for should meet your minimum requirements. A
plan designed for disability protection, for instance, can protect you if you
fall seriously sick or get injured.
Opting for an Expensive Plan
Another common mistake is to purchase a plan that is more
expensive. It can be hard to estimate how much you should spend on a plan,
especially when it comes to liability insurance. Therefore, we suggest that you
have a discussion with an agent about your assets. At young age, you won't have
to pay for an expensive plan as you won't have a lot of assets to protect.
Opting for a Cheap Plan
Under insuring yourself is another common mistake. Ideally,
your basic plan should be able to cover your expenses. In other words, in case
of an accident, your plan should be able to pay for all the medical expenses.
For a health plan, the same is true. If you are in the
United States, one million dollar can be enough. However, if you have a major
illness like cancer, your medical expenses will be much higher.
Opting for the Wrong Insurance
Getting the wrong type of insurance policy is another common
mistake. It's not a good idea to opt for policies that won't be of any use to
you. For instance, if you are under the age of 30, you don't have to get
different types of policies.
Keep in mind that you don't have to go for all types of
policies. If you know what you are going to get, you won't have to get
surprised at the time of filing a claim.
Not Considering Different Policies
Make sure you shop around before deciding on a policy. It's
better to do this every now and then. This will help you save money by opting
for a different policy. In addition, you may consider policies that offer
discounts based on your location or profession. Shopping around won't take much
time but save you a lot of money. Plus, it will help you avoid common mistakes.
In short, these are some common mistakes that you may want
to avoid when it comes to buying the right type of insurance policy. It's much
better to consult a health insurance agent to make an informed decision.
If you are looking for a California health insurance agent,
we suggest that you check out Health Insurance Agent.
