AIG Singapore and DBS’ partnership is already changing your travel insurance claims experience. Find out how.
AIG Singapore and DBS Bank have launched a new electronic payment service that they say will address the needs of the more than half a million travel insurance policyholders in the country. The new payment service will allow DBS or PSOB clients that are AIG policyholders to receive immediate payouts on travel claims.
The electronic payment service will ease the process through which customers receive payouts for travel insurance claims by essentially eliminating the need for cheques. The unveiling of the payment service marks yet another milestone in the push to make electronic payments mainstream in Singapore.
Despite being one of the fastest growing and among the biggest economies in Asia, Singapore has come under scrutiny in recent years over its sluggishness on the adoption of electronic payments. Six out of ten transactions in the country, still involve cash and cheques compared to some major cities in China where electronic payments are the norm.
The country’s financial landscape is however slowly changing as the Monetary Authority of Singapore continues to encourage the use of electronic payments. AIG Asia Pacific and DBS Bank hope to gain a head start in the electronic payment business as they move to focus on the travel industry.
Cutting travel insurance payout waiting times to 3 days
According to the two companies, travel insurance policyholders should expect payouts to their bank accounts in just three working days down from the current eight. Enhancing customer experience and reducing the wait times appears to be the selling point of the new service.
“At AIG Singapore, we are committed to bringing innovative solutions to meet the changing needs of customers. Working with DBS marks another step in our digital transformation journey to leverage smart technologies for a swifter and more seamless claims experience, thus enabling Singapore’s Smart Nation agenda,” said Ms. Cady Ho, AIG Singapore’s Vice President.
Policyholders are being promised payouts for simple travel inconvenience such as flight or baggage delays. According to AIG, the service will leverage DBS’s new application programming interface IDEAL RAPID, to process more than 40,000 travel claims every year.
MSIG’s Electronic Payment Service
AIG Singapore is not the first insurance company to expand its footprint into the electronic payment business, in pursuit of customers. MSIG Insurance has also partnered with DBS Bank to launch an electronic payment service targeting travel insurance claims
MSIG was the first insurance company to tap DBS real-time payment service as it sought to improve customer experience when it comes to processing traveler’s insurance claims. In contrast to AIG Singapore service, the MSIG payment service settles claims in four days
According to DBS Bank Managing Director, Mr. Benjamin Yeo, the unveiling of such digital technologies should go a long way in creating faster and streamlined processes for clients and the travel industry as a whole. The launch also marks an important step in the reduction of reliance on cheques that have long wait times.
Growing focus on electronic payments
A shift of focus to electronic payment services by some of the largest insurance companies in Singapore does not come as a surprise. The sector accounted for 21.6% or S$781 million of the total general insurance business in the country in 2015. The sector has been growing given that S$711 million worth of claims were processed in 2014 compared to S$628 million in 2013.
Travel claims for high impact incidents such as extreme weather medical outbreaks have been on the rise, having increased by 85% over the past three years. The number of Singaporeans buying travel instance has also been on the rise.
Some of the initiatives that MAS has put in place to enhance the deployment and use of electronic payments in the country include streamlining and strengthening the regulatory framework. The country’s central bank has also established a new governance model for payments.
To be sure, the claims process is an important aspect in selecting a suitable travel insurance plans. What are some other factors that you should consider before buying one?
Other factors to consider when selecting Travel Insurance Plans in Singapore
- Medical Cover
The most important aspect of any travel insurance pact is the medical benefit it offers. A plan that adequately covers high medical care expenses especially in overseas hospitals or clinics would be perfect. Some of the other things to look out for include medical expenses coverage and the duration offered on return.
- Policy Coverage and Exclusions
Price should not be the only thing to look out for when selecting a travel insurance plan. A good cover, in this case, is one that takes into considerations pre-existing medical conditions such as asthma and hypertension.
Policy coverage takes into consideration the nature of the trip, so you should pay a close watch on that too. There are plans that don’t cover dangerous activities such as mountain climbing, so if that is what you are doing, you need to be careful not to choose those plans. It is always important to analyse the coverage that you would be entitled to on any given plan.
- Trip Postponement or Cancellation
It is also important to check whether a travel policy provides coverage for trip postponement or cancellation.
- Travelling Entourage
Your travel plan needs to cover everyone you are traveling with, particularly for senior citizens above 75 years of age, young children below six months, and people who need special attention like pregnant women.
Here are some of the most popular travel insurance policies in Singapore that you might choose from.
Travel Insurance Comparison Table
|Budget Direct Basic||Etiqa Basic||Fwd. Premium||Allianz Global Assistance Bronze||Hl Assurance|
|Premium (S$)||1wk Asean||18||14.57||20.25||17||22.5|