The future of insurance lies in giving control back to customers Following a digital transformation journey that started four years ago, Income believes the way forward lies in giving customers the right solutions that meet their specific needs, through the right channel and at the right time. This more targeted approach reaches customers with the relevant information, at the right time and via their preferred channels. With improvements made to its data analytics and tech capabilities, Income has been able to reach underserved markets with new insurance innovations such as Critical Illness: Pay Per Trip (CIPPT), Milesurance and SNACK. Micro-insurance plan CIPPT was created based on feedback from private-hire drivers that they were unable to commit to a fixed premium for critical illness policies because of salary fluctuations. It enables drivers to contribute as little as $0.10 per trip to accumulate protection at a comfortable rate. Ultimately, he adds, insurance still has to serve its original purpose: to protect against an unforeseen event. The difference is how the customer goes about interacting with Income to obtain products and services that suit their lifestyle. Whereas small-ticket items such as travel and motor insurance can typically be purchased via a straightforward online transaction, the customer expects a different journey when buying health and life insurance. The answer lies in the ability to understand and learn from data, and applying what is learnt to create an omni-channel customer experience. Income's 1,200-strong workforce underwent design-thinking courses to speak a unified language and deliver positive experiences at every stage of the customer journey. Agile, cross-functional teams are able to solve business problems holistically, with a focus on customer-centricity. "The way to future-proof the company would be to build an organisation that is innovative, resilient and customer centric." (Adapted for academic use The Straits Times 28 April 2021 "The future of insurance is in giving back control to customers.")

(a) NTUC Income is pulling out all stops to meet the needs of its insurance customers. Examine the reasons why it works hard at being customer-centric. (40 marks)

(b) Discuss the benefits that Income gains by engaging in a learning relationship with its customers through these initiatives. (40 marks)

(c) To succeed in its efforts, Income needs to be a trusted agent to its policy holders. Appraise the conditions necessary to be a trust agent. (20 marks).