A demand audit of the insurance market in Singapore

Faced with fierce competition, increasingly more organizations seek to audit demand in the marketplace. The same can be said for insurers. Empirical findings show that insurers are widely disliked by customers, and insurance agents talked to clients on average once every eight years. We found that approximately 44 per cent of the population does not own any form of insurance, for example life insurance and personal accidents insurance. What are the underlying reasons why the majority of people do not insure themselves against hazards? There is a need for insurers to undertake a demand audit in order to understand what the policyholder wants and needs. Information from customers plays a major role in the auditing process. Our audit checklist includes: demographic characteristics of policyholders and non‐policyholders; reasons for being insured and not insured; and critical purchasing factors. The demand audit that we surveyed will help the insurance industry design a good strategy to meet the demands of the market.