Consumers and businesses in Singapore have good levels of trust in the insurance industry, with scores ranging from moderate to strong, according to the annual survey conducted by the Insurance Culture and Conduct Steering Committee (ICCSC).
The inaugural Insurance Trust Indicator Study (ITIS) was conducted by Forrester over a three-year period and is part of the ICCSC and the industry’s efforts to assess the levels of trust in the industry, in addition to identifying areas where consumers and businesses’ trust can be improved. The survey involved more than 2,000 consumers and 500 business employees.
One of the key findings of the survey was that while consumers and businesses view insurers as trustworthy, there is a higher level of trust from businesses than consumers. Life insurers achieved strong trust levels for firms, but individual customers slightly trusted them less. As for general insurers, trust levels were strong across businesses and consumers, resulting in a trust indicator between 68 to 80 for insurance companies.
Meanwhile, both consumers and businesses trust intermediaries less than actual insurers. The study revealed that compared to the score reached by carriers, intermediaries such as brokers, agents, and financial advisers only scored between 68 to 74.
Brand loyalty is also well and alive in the industry, with more trusted insurers and intermediaries more likely to be recommended and chosen by consumers and businesses. The study also revealed links between higher trust and positive outcomes around branding, engagement, and forgiveness.
On the other hand, reputational damage caused by breaches of trust carry risks for the industry beyond the offending firm. Across nine scenarios tested by the study, breaches that triggered the breaking point of both consumers and businesses included legal, regulatory, and data leaks that expose customers’ confidential information. These breaches may result in reducing consumers’ and businesses’ current product holdings, limiting additional purchases, or seeking alternatives.
“Results of the inaugural Insurance Trust Indicator Study show that the industry can certainly do more to bolster trust among consumers and businesses alike,” ICCSC chairperson Dr Khoo Kah Siang said. “The best practice papers rolled out by the ICCSC will be a good starting point for insurance companies to adopt and act upon. It is our collective responsibility to strengthen relationships with the public by elevating culture and conduct standards in Singapore.”
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