The firm hopes to redefine the concept of insurance with stackable, micro-insurance offering «Snack,» which embeds the purchase of coverage into daily activities.
«We believe this is going to be a game-changer for the insurance industry as it has never been approached this way before,» Peter Tay, NTUC Income chief digital officer, said at the product's virtual launch on Thursday.
«Snack» removes several barriers that prevent people from getting the coverage they need, Tay said, noting hurdles such as cost and lack of flexibility.
Instead of paying insurance premiums at a fixed quantum either monthly or annually, users can accumulate and gain insurance coverage for critical illness, term life and personal accident plans for as low as S$0.30 while doing daily activities such as jogging, having a meal or taking public transport. When a micro-premium is paid, the user receives coverage based on the sum assured for 360 days. Users can decide when and how frequent premiums are paid by linking them to preferred lifestyle triggers. Partners include EZ-Link, Fitbit, and Burpple, with Visa to be added in the near future.
More Flexibility
NTUC Income previously explored the micro-insurance space through a critical illness pay-per-trip offering for Grab driver-partners in 2019.
Tay said «Snack» was developed to cater to a new generation of users who are well-informed, and want choice, convenience and personalization in their insurance products. The firm plans to enhance its insurance offerings with investment and savings options in the future.
«This makes insurance more accessible and relevant to everyone, keeping it easily adaptable to lifestyle needs and personal financial situations,» Tay said in a statement.
