MOST Singapore residents have a positive view of the local life insurance industry and trust their insurance advisers, according to a survey.
A recent consumer survey commissioned by the Life Insurance Association (LIA) polled 800 Singapore respondents who are categorised into users and non-users of life insurance products, but who intend to own one in the next three years.
Among the users, respondents are then further classified according to how confident they are in their knowledge of insurance products.
About 72 per cent of all the respondents said that they are satisfied with the industry. Of this, the very-confident users are most satisfied, while non-users and not-confident users need greater assurance and education.
Three quarters of the respondents placed high trust in the overall competency of their advisers, with 69 per cent of users relying only on one trusted agent.
As a result, almost all of these users do minimal or no research about a policy before deciding to purchase it, the survey revealed.
In choosing which industry adviser to use, users tend to look for solution-based services that address their insurance needs, while non-users seek trust-worthiness of the adviser.
Of those who rated themselves confident in their knowledge of insurance, 80 per cent claimed to need advice when making decisions.
The survey also found that most consumers have a good understanding of general remuneration policies, but not the details.
About 93 per cent of all respondents do not doubt the fairness of the current remuneration system, while 79 per cent of those aware of differentiated remuneration by product claim little impact on buying behaviour.
LIA said that the findings of the study will set a baseline for it to measure the industry’s progress in achieving fair dealing for its customers.