Beginning with approximately 280 financial advisers, British insurance company Aviva has launched Aviva Financial Advisers in Singapore. In a crowded market how will the firm sustain and grow?
Clients and potential clients in Singapore are becoming increasingly savvy, as they have greater access to financial information at their fingertips.
In tandem with improved financial literacy, customers are also expecting more options and accessibility to financial planning advice and solutions that cater to their individual needs and preferences. Fintech and Insuretech firms are also squeezing in to the space with innovative and cheaper alternatives.
Plenty of Choice
The launch of the compareFIRST web aggregator last year, as part of the FAIR initiatives, now allows consumers to quickly compare the features and premiums of similar life insurance products, offered by different insurance companies. It aids consumers to make better informed decisions.
The Financial Adviser channel in Singapore has grown consistently over the last decade. The market share at the end of 2015 was 20 percent. On the other hand, the tied agency channel has declined steadily from 68 percent in 2006 to 39 percent in 2015.
Open Architecture?
Aviva claims that the launch of Aviva Financial Advisers is aligned with this initiative, as in addition to a comprehensive suite of Aviva solutions across life insurance, health insurance, general insurance and investments, they will also provide customers more choices with access to an extensive range of products from other «trusted providers».
The new advisers are licensed on a full range of life, health, general insurance and investment products.
«The launch of Aviva Financial Advisers marks an important milestone for Aviva, and signals our strong conviction that the Financial Advisory (FA) channel will dominate the future of insurance. Among all distribution channels, FA firms are best placed to deliver quality holistic financial planning services to their customers,» said Nishit Majmudar, CEO of Aviva Singapore.
