Travel Insurance

Affordability of Premiums

Frequently Asked Questions

How does the industry ensure that premiums remain affordable?

Insurance works on the basis of pooling funds from many individuals to pay for the unforeseen losses that may be incurred by some. In the event of a loss, the insured will make a claim with the insurance company. Every insurance company has in place diligent claims handling processes to detect and identify fraudulent or inflated claims. With insurers being vigilant in their treatment of claims, consumers will not have to bear the burden of invalid claims that will result in an increase in premium.

In general, an insurance company will require you to complete a claim form and submit the relevant information to support your claim. The insurance company may thereafter appoint a specialist, for example loss adjustors, to review your claim. Your full cooperation will be needed throughout the claims process.

Insurance companies will often offer different levels of protection to help keep premiums affordable while catering to the different needs of individual travellers. Travel insurance policies are generally differentiated by the extent of cover, length of trip and geographical areas of travel, so you do not pay excessively for protection you do not require. Insurance companies strive to make it convenient for you to purchase travel insurance while maximising efficiency.

This is done via two-in-one brochures (brochure with application), automated purchasing through AXS machines or 24/7 purchasing over the internet. Some insurers provide insurance directly to you, cutting out middleman costs. Finally, travel insurance is priced competitively as there is a large number of insurers in Singapore who offer the product. This benefits customers as they will have a wide range of products to choose from.