Can insurtech fix Singapore’s insurance sector?

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Name something that hasn’t changed in the past 20 years. Maybe you’d mention fax machines or calculators. But for Matthias De Ferrieres, the CEO of Singapore-based My-Insurer, he’d say it’s the insurance sector in the city-state.

While 2020 seemed to be a booming year for insurtech in Singapore – remember Singlife’s merger with Aviva, AMTD’s acquisition of PolicyPal, and CXA Group’s successful fundraise? – some experts argue that little innovation has actually been made in the industry in the past decade.

So today, we look at:

• Why the insurtech sector is not quite innovating in the little red dot
• The PUBG developer making an investment
• Other newsy highlights such as Gojek and Tokopedia closing in on their merger, and US-listed Chinese EV makers to list in Hong Kong

PREMIUM SUMMARY

It’s a tough world out there for insurtech

Innovation is tough. It’s even more challenging when you add regulations, high competition, and the need for a large amount of capital to the mix. Insurtech startups in Singapore have had to contend with all of these factors, which have made it difficult for them to innovate, scale, and achieve profitability. But they’re not the only reasons.

• The big D word: Almost all insurtech firms regionally are targeting distribution or creating new digital channels to replace agents. But experts argue that changing the marketing for an existing product doesn’t necessarily count for disruption.
• Case in point: Singapore-based Singlife launched in 2014 as a digital-only life insurance company. However, according to a source, the use of digital channels had its limits, and ultimately, Singlife still needed financial advisors to do the traditional way of selling. This might explain its merger with Aviva Singapore.
• The big F word: Fundraising is important for startups. But it’s even more so for those in the insurtech sector as they are competing against larger, wealthier, and more established insurers. While the market has no lack of capital, there’s a preference for it to be deployed to existing investments rather than on newer startups.

Dive deep into the other challenges faced by insurtech and the future of the industry: Why insurtech in Singapore has been a tough nut to crack

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