23/02/2021 Insurance Innovation


Let your lifestyle insure you!

Innovation presentation

Millennials who are just starting out in their first jobs or are still pursuing their full-time studies are unsure or confused about how to start their journey to build insurance coverage for themselves. These young adults see the value of insurance protection but are hindered by a lack of affordable options that offer flexibility in premium payment and coverage. Some are also discouraged by the seemingly tedious conventional insurance application process.

Cash flow is also top-of-mind as their income may not be substantial, or they may not be working full time while still studying. There is also uncertainty caused by the COVID-19 public health crisis which has caused many to watch their expenses closely and/or to tighten their belts further in the face of economic instability and volatile business conditions.

Income is constantly exploring ways to extend the accessibility of insurance to people in Singapore. With these consumer pain points in mind, NTUC Income (Income) launched SNACK in June 2020, an industry-first insurance proposition that revolutionised the way consumers engage with, purchase and obtain insurance in Singapore. With the SNACK mobile app in hand, users can easily build their Term Life, Personal Accident or Critical Illness insurance coverage by paying micro-premiums from S$0.30. By linking their micro-premium payments to their daily lifestyle triggers – such as ordering a meal, taking public transport and buying groceries, users stack their insurance coverage seamlessly and almost invisibly with ‘spare change’ as they go about their day-to-day activities.

SNACK was designed to resonate with people who prefer to have flexible cash flows to see to other financial commitments but yet at the same time, want to benefit from insurance protection. It reimagined the conventional channels of obtaining insurance, making insurance ‘invisible’ and integrated with customers’ lifestyles, while lowering the barrier of entry to insurance and extending access to insurance to more people with diverse financial backgrounds.

Uniqueness of the project

With SNACK, the insured gradually stacks his insurance coverage of choice by paying micro-premiums ($0.30, $0.50 or $0.70) and accumulating micro-policies that offer a specified sum assured. The insured decides when and how frequent premiums are paid by linking payment to lifestyle triggers on the SNACK app, such as ordering food, exercising or taking public transport. Each micro-policy, issued when a micro-premium is paid, covers the insured for 360 days.

Subsequently, in December 2020, Income launched SNACKUP, an extension to SNACK that allow consumers to build complimentary insurance coverage, contributed entirely by merchant and participating brands, when they spend with their Visa cards – another refreshing lifestyle-based insurance proposition, and also an innovative win-win outcome for both SNACK users as well as merchants and participating brands.

With merchants chipping in to pay for their coverage, customers can also accumulate their sum assured and reach their preferred level of coverage, much faster and earlier.

Today’s consumers are well informed, and increasingly seek flexibility, simplicity and convenience in the products and services they engage with, and insurance is no exception.

SNACK is designed to speak to the evolving needs of today's consumers.

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