Insurance Innovation of the Month: SNACK by Income
Efma-Accenture’s Insurance Innovaton of the Month award for March 2021 goes to SNACK by Income in Singapore for their new flexible insurance offering for younger generations.
When a millennial first joins the workforce, the idea of insuring themselves can be confusing and somewhat intimidating. They may want coverage for some things in their life, but a full-blown life insurance policy from a legacy firm seems a bit much. What they need is something affordable and flexible.
Enter SNACK by Income, a solution tailored to the insurance needs of the next generation. With SNACK, a customer gradually stacks his/her insurance coverage of choice by paying micro-premiums ($0.30, $0.50, or $0.70) that accumulate micro-policies that offer a specified sum. 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.
These flexible policies are much more aligned with the lifestyles of younger generations, who seek to avoid major financial commitments and instead want convenient, embedded options. SNACK offers an alternative and complementary way for people to build, earn, and manage their insurance via small steps that over time add up to sizeable coverage, transferring autonomy back to the consumer and empowering them to close their protection gaps at their own pace and comfort.
Launched in June, 2020, initial results have been impressive. To date, 21,500 people have signed up for a SNACK user account to start building their insurance coverage. More than 80,000 policies have been issued with +$42 million assured across Term Life, Critical Illness, and Personal Accident policies.
While the top-level numbers are impressive, customer anecdotes capture the real-world impact of the new offering. “The idea of allowing people to contribute to their preferred insurance through their lifestyle is a creative and affordable way for those who aren’t able to pay hundreds of dollars for insurance. I also like how the app allows us to have the flexibility to edit our contribution anytime!” said Alvin Yuen, 23. SNACK is clearly a success and has only just begun changing the way the next generation thinks about insurance.
SNACK will be automatically selected as a nominee for the Efma-Accenture Innovation in Insurance Awards 2021. Submit your innovations on the Insurance Innovation portal. Participation is free of charge and open to all insurance institutions. Deadline to submit for the 2021 Awards: 9 April.