Providend launches robo-adviser with 'no hard sell'

Selfcheck advises users on the types of insurance they need and how much is needed. It also notes if they have a surplus or shortfall in their coverage. The tool recommends the highest-ranked policy by DIYInsurance.com.
Selfcheck advises users on the types of insurance they need and how much is needed. It also notes if they have a surplus or shortfall in their coverage. The tool recommends the highest-ranked policy by DIYInsurance.com.sg.PHOTO: PROVIDEND

Online tool helps users assess their life insurance needs and offers solutions

SELFCHECK BY PROVIDEND

Fee-based retirement planning firm Providend has launched Singapore’s first life insurance robo-adviser on DIYInsurance.com.sg, its online engine for life insurance products.

Selfcheck as it is called helps consumers obtain an assessment of their life insurance needs.

"This is like having an insurance adviser help you with your insurance check-up and providing instant advice, but without you feeling the obligation to buy anything," said chief executive Christopher Tan.

How it works: Selfcheck users will be advised on the types of insurance they need and how much is needed, in areas such as death cover, critical illness, healthcare, disability income and long-term care. It also notes if you have a surplus or shortfall in your coverage.

If there is a shortfall, the tool compares policies across insurers and recommends the highest-ranked policy (by DIYInsurance.com.sg) that is closest to meeting your needs.

Mr Tan says: "We wanted to create a solution where people can get advice from a place they can trust and find out if they have enough insurance coverage, are over-insured, getting the right types of insurance coverage they need or if they are paying too much for their insurance policies.

"Everyone can now perform a Selfcheck and obtain a customised and tailored insurance solution."

The Selfcheck process is not entirely devoid of human interaction and advice as a team of salaried advisers will be assigned to complete the process.

Pros: The advisers assigned to Selfcheck are not remunerated on a commissions basis so there is no incentive to hard-sell and push products. Besides advice, DIYInsurance also provides after-sales service such as claims handling.

As the insurance planning process is more efficient with Selfcheck, DIYInsurance is offering a higher commissions rebate of 50 per cent, up from 30 per cent, so consumers can save more.

The commissions rebate is for as long as the insurer pays DIYInsurance on a policy, which could be over a period of three to six years.

Cons: DIYInsurance does not carry plans from AIA, Great Eastern Life and Prudential but Providend says the range of plans is wide enough for a comprehensive comparison.

Correction Note: This article has been edited to correct the website address to DIYInsurance.com.sg.

A version of this article appeared in the print edition of The Sunday Times on November 20, 2016, with the headline 'Providend launches robo-adviser with 'no hard sell''. Print Edition | Subscribe