dissertation for international business management

Dissertation northumbria university. Title: An analysis on the Protection Gap and the buyers’ attitude towards insurance in Singapore Introduction The research topic is about the buyer attitude towards insurance in Singapore. There are a lot different types of insurance companies in the market. Insurance is a form of protection toward life and a form of saving cum investment for people. Insurance history can be chase from the early decades of the 17th century, but right until now people in Singapore still do not fully believe on the importance of insurance. I want to collate the statistic of Singaporean towards insurance’s attitude so that to understand what do they think of insurance. Literature Review People tends to have a negative comments or thinking towards insurance company. Singaporean tends to treat insurance agent like dirt or pests that irritate them. In fact, according to Monetary Authority of Singapore, lacking of retirement planning and underinsurance among Singaporeans is a major concern in an ageing population. The total life insurance coverage for economically active Singaporeans and Permanent residents amounted to S$609 bn as at the end of 2011. The absolute amount of Protection Need was $1193 bn in 2011 which translated to an overall average Protection Need of 10x an individual’s annual salary. The factor of annual salary to meet the Protection Need varied significantly between the different household profiles and income levels. The average Protection Gap of working adults was 3.7x annual income and insurance coverage per economically active person was 5x annual salary. A further 1 annual income to meet the Protection Need was met by existing CPF Savings. This resulted in an overall Protection Gap in Singapore as at the end of 2011 of S$462 bn. The Protection Gap is defined as the Protection Need less CPF Savings and existing insurance coverage. Hence, the research that I am doing will help the insurance companies to understand the buyer’s attitude towards Insurance.