SNACK sets itself apart as the first-of-its-kind "snackable" insurance program in Singapore. SNACK offers basic products for term life, critical illness and personal accident, and it is on a mission to disrupt the market by offering stackable micro premiums that can be "purchased" with everyday activities. The digital insurance from NTUC Income makes it possible for a small amount—in the range of cents—to be deducted from an activity like using a card to pay for public transit or even purchasing a takeaway meal or exercising.
With a micro-premium paid, users will get protection for a micro-insurance policy and 360 days of coverage. As Peter Tay, NTUC Income’s Chief Digital Officer, says: "we believe SNACK is the future of insurance as it enhances insurance accessibility and ultimately, bridges protection gaps and fulfills a larger purpose of getting everyone meaningfully insured."
Bite-Sized Insurance Programs
SNACK Rethinks the Way Consumers Purchase Insurance
Trend Themes
1. Micro-premium Insurance - The trend of micro-premium insurance provides an opportunity for insurers to offer affordable and accessible coverage by breaking down premiums into small, stackable amounts.
2. Snackable Insurance - Snackable insurance programs like SNACK allow consumers to purchase insurance coverage in small increments by linking it to everyday activities, presenting opportunities for insurers to increase accessibility and convenience.
3. Insurance Accessibility - The focus on enhancing insurance accessibility through innovative digital platforms, as demonstrated by SNACK, opens up opportunities for insurers to cater to previously underserved markets and bridge protection gaps.
Industry Implications
1. Insurance - The insurance industry stands to benefit from the disruptive innovation opportunity presented by micro-premium and snackable insurance programs in terms of expanding customer reach and increasing product accessibility.
2. Fintech - The fintech industry can explore collaborations with insurers to develop innovative platforms and technologies that facilitate the seamless integration of micro-premium insurance models, enabling customers to access coverage through everyday financial activities.
3. Technology - The technology industry can leverage the demand for digital solutions in the insurance sector to develop user-friendly platforms and apps that enable customers to easily participate in and manage snackable insurance programs.