Aviva opens financial advisory unit in Singapore
UK insurance giant has launched Aviva Financial Advisers, a financial advisory firm to be based in Singapore. The firm is launching with approximately 280 financial advisers and is licensed to advise on a full range of life, health, general insurance and investment products.
Mr Nishit Majmudar, CEO of Aviva Singapore said: “At Aviva, we are very excited about the launch of Aviva Financial Advisers. We hope this move will provide the catalyst for the shift of Singapore’s insurance industry towards more mature markets such as the UK and Australia, where most financial advisers offer solutions from multiple product providers. We believe customers will benefit from greater options to meet their needs.”
The FA channel in Singapore has grown consistently over the last decade. The market share at the end of 2015 was 20 percent. On the other hand, the tied agency channel has declined steadily from 68 percent in 2006 to 39 percent in 2015.
Customers in Singapore are becoming increasingly savvy, as they have greater access to information in today’s digital era. In tandem with improved financial literacy, customers are also expecting more options and accessibility to financial planning advice and solutions that cater to their unique needs and preferences.
An industry-wide web aggregator for insurance products was launched last year, as part of a comprehensive evaluation of the financial advisory industry known as the Financial Advisory Industry Review (FAIR). It allows consumers to quickly compare the features and premiums of similar life insurance products offered by different insurance companies, helping them make informed decisions. The launch of Aviva Financial Advisers is aligned with this initiative – in addition to a comprehensive suite of Aviva solutions across life insurance, health insurance, general insurance and investments, they will also provide customers more choices with access to an extensive range of products from other trusted providers as well.
Majmudar added: “The launch of Aviva Financial Advisers marks an important milestone for Aviva, and signals our strong conviction that the Financial Advisory (FA) channel will dominate the future of insurance. Among all distribution channels, FA firms are best placed to deliver quality holistic financial planning services to their customers.”
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