Deal focus: Singapore Life delivers insurance update

Technology is seeping into every facet of life, and insurance is no exception. The industry’s most venerable institutions are increasingly sharing space with start-ups that promise consumers a level of convenience that they have never known from traditional players.

“Regionally and globally, we see a variety of tech players, from ride-hailing to social messaging apps, moving to offer both banking and insurance products and services,” says Walter de Oude, founder and CEO of Singapore Life. “This is driven by online behavior patterns: everyone does everything online these days, and why should insurance and wealth management be any different?”

De Oude saw this trend developing while working as CEO at HSBC Insurance in Singapore, and he felt there was an opening for a company that could provide consumers with financial products that were easy to understand and use, but with the reliability of an industry veteran. This led to the creation in 2014 of Singapore Life, the city state’s first fully licensed independent life insurance firm since 1970. 

The acquisition of the business portfolio of Zurich Life Singapore last year was an early milestone for the company, growing its life insurance coverage to S$6.6 billion ($4.8 billion). Now, with $33 million in Series B funding raised from US industry giant Aflac and Aberdeen Standard Investments this month, Singapore Life is preparing to bring its model of consumer-friendly insurance to other Southeast Asian markets. 

The commitment from Aberdeen strengthens the firm’s existing strategic relationship with Singapore Life beyond managing its fiduciary assets, while Aflac’s success in Asia – particularly with lifestyle-related diseases that are expected to become more prevalent in the region in coming years – makes it a natural partner for the start-up.

“Aflac brings us support following their amazing growth story around cancer and corresponding related products in Japan, which we may look to bring to Southeast Asia, while Aberdeen’s support as a quality asset manager means we can bring even greater returns to our customers,” de Oude says. “We have always had a great relationship with Aberdeen, and this investment extends that relationship further.”

In addition to bringing its products to new markets, Singapore Life is planning to ramp up its venture arm, which finds leading fintech players in the region for the parent to partner with or acquire. The company sees aggressive forward movement as the best way to take advantage of its industry connections.

“Singapore Life needs to continually leverage on the core strengths that set us apart from our peers. We can’t outspend our incumbent competition, but we can run faster than them,” says de Oude. “This delivery mindset combined with a tech-first culture means we come at the problem without a limiting legacy or silo thinking, and that can make Singapore Life a real threat to the old guard.”   

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• Topics
• Southeast Asia
• Financials
• Technology
• Early-stage
• Singapore
• Aberdeen Asset Management
• insurance