Young Singaporeans prefer human advisers over digital tools for insurance: survey

[SINGAPORE] Young adults in Singapore continue to favour human advisers over digital tools when it comes to insurance decisions, even as the city-state remains one of Asia’s most digitally mature markets, a new regional study by insurer Prudential has found.

The findings showed that nearly seven in 10 respondents in Singapore, or 69 per cent, prefer consulting a human adviser for insurance advice, compared with 31 per cent who favour digital tools.

Engagement with digital insurance platforms remains limited, as less than half of respondents, or 49 per cent, said they had explored insurance options using digital tools in the past five years.

Only 59 per cent were comfortable making life insurance decisions on their own using digital tools, below the regional average of 67 per cent.

The findings are drawn from Prudential’s Financial Mindset of Young Adults in Asia study, which surveyed more than 5,300 respondents aged 20 to 35 across seven markets – Singapore, Hong Kong, Indonesia, Malaysia, the Philippines, Taiwan and Thailand. The online survey was conducted between July and August 2025, with 500 respondents from Singapore.

Against this backdrop, Prudential observed that while young adults are confident navigating online platforms to compare products and manage their finances, human guidance remains crucial when they face complex decisions or high-stakes questions, particularly around insurance coverage and claims.

Ben Tan, chief distribution officer at Prudential Singapore, told The Business Times, that at its heart, insurance is a “people business”.

While it has an agency force of more than 5,400 financial representatives to meet demand for personalised advice and in-depth discussions, the insurer also has digital tools to support customers.

For instance, customers with simple queries can use PRUchat, the insurer’s online chatbot, which serves as a first line of support.

Prudential has also deployed Grace, an artificial intelligence-powered talkbot launched in 2022, which is designed to engage customers in natural conversations and provide reminders such as premium payment alerts.

According to the insurer, the tool can even detect changes in tone that may signal urgency, prompting follow-up by a financial representative.

Measured approach to insurance and investing

Beyond channel preferences, the survey found that young adults in Singapore take a practical and measured approach to insurance. They tend to favour simple products that give them a sense of control and show a balanced attitude towards risk.

Notably, 64 per cent of Singapore respondents preferred single-coverage products over bundled solutions, compared with 54 per cent regionally.

This pragmatism extends to broader financial behaviour. More than six in 10 respondents in Singapore, or 63 per cent, said they prefer clear planning over spontaneity. At the same time, optimism remains cautiously intact.

While nearly 70 per cent of young adults across Asia expect their personal finances to improve over the next five to 10 years, the figure falls to 59 per cent in Singapore. Just over half, or 52 per cent, are confident they will have sufficient funds for retirement.

The survey suggested that in Singapore, young adults prioritise control, balance and financial stability when considering life and health insurance.

This preference is reflected in changing customer expectations. Angeline Tan, head of product management at Prudential Singapore, noted that customers are increasingly seeking holistic financial planning solutions that address their protection and long-term growth needs.

“But financial planning is not a one-size-fits-all, as each individual has different needs, goals and budgets,” she added.

The study also highlighted how uncertainty shapes financial behaviour.

Across Asia, 63 per cent of young adults said living with uncertainty has become the norm, with financial security cited as the top concern by 77 per cent of respondents. Close to 60 per cent said they are now more focused on future planning than on enjoying the present.

In terms of assets held, banking products such as deposit accounts remain the most common at 93 per cent, followed by real estate at 59 per cent, stocks and exchange-traded funds at 48 per cent, and funds at 43 per cent.

Overall, young adults across the region are taking a considered approach to investing. While some are willing to take on higher risk for potentially greater returns, nearly as many prefer safer options, with most maintaining a long-term perspective regardless of risk appetite.

In Singapore, 53 per cent favour long-term instruments, 41 per cent prefer low-risk options, and 40 per cent are open to higher-risk investments.

Flexibility, however, remains key. Nearly 60 per cent of Singapore respondents want financial plans that can adapt as circumstances change, while 48 per cent seek to balance disciplined investing with spending on experiences that bring personal fulfilment.