Adoption of Virtual Banks and Insurers

Adoption of Virtual Banks and Insurers 29 Survey Findings Brand awareness of virtual insurers Both traditional and virtual insurers are investing in digital platforms to directly connect with customers. Unlike traditional insurers, end-to-end digital platforms operated by virtual insurers do not require insurance agents, brokers, or physical premises to provide customer services. These platforms promote efficiency in price quotation, insurance application, and claims. As the development of virtual insurers is still at a nascent stage, it is important to determine their brand awareness. Similar to virtual banks, we presented the logos and names from a pool of virtual, digital, and traditional insurers as well as other financial institutions. The respondents were asked if they could identify the virtual insurers from the pool; they could select multiple entries. The results show that 45.7% of the responses correctly identified the two virtual insurers. The remaining traditional insurers and non-insurance companies in the list received 54.3% of the responses. Bowtie and Avo are associated with a higher level of brand awareness as digital insurers. It is interesting to note that the firm that received the third highest response after Bowtie and Avo is a non-virtual insurer. This non-virtual insurer has been actively promoting its online insurance products and services. The results suggest that the public perceives some of the online services of traditional insurers as virtual insurers. Note: The names of the virtual insurers are masked as our objective is to assess the overall brand awareness of virtual insurers, not their market share. Exhibit 9 Brand awareness of virtual insurers Virtual Insurer 1 20.3% Virtual Insurer 2 25.4% Non-Virtual Insurers 54.3%