Allianz vs NTUC Income Travel Insurance: Which is cheaper?

By now, everyone would know that Allianz has offered to buy 51% of NTUC income.

As a result of this news, there were concerns that insurance premiums would go up. This is because of the perception that NTUC income provides lower premiums for similar insurance. 

How true is that?

Here is a comparison of similar policies for NTUC and Allianz

Travel Insurance

We used a 10-day trip to Japan from Nov 1 to Nov 10 as a comparison. Note that only prices are compared, not benefits. Benefits terms differ from each insurance, making a direct comparison impossible.

Allianz

Allianz provides travel insurance for individuals' single or annual travel. Interestingly, only a singular country is available on the Allianz website application. There is no family coverage.

The rates are as follows.

Single

For groups of 4 including children

NTUC Income

In comparison, NTUC provides regional coverage for single and annual trips.

The rates are as follows

Single

Family

Verdict

Interestingly, Allianz's basic single plans were cheaper for adults at $43.50 vs. $49.46 for NTUC income. For other coverage, NTUC income is much cheaper by around 15%.

Motor Insurance

We also compared the Motor Insurance. We used a Mercedes GLB 2023 model and comprehensive insurance as a comparison.

Allianz

Allianz allows you to choose your excess and vehicle repair options; we used the same benefits as NTUC to compare.

NTUC

Verdict

Allianz is cheaper for Motor Insurance for this model by around 10% at $1372++ vs $1539 ++..

Which is cheaper

NTUC is cheaper for travel insurance than Allianz, while Allianz triumphs for car insurance. Therefore, it is not easy to conclude that Allianz's takeover of NTUC's income will lead to higher insurance premiums. 

As insurance premiums tend to reduce due to economies of scale, a takeover may lead to lower prices in the future. However, given that Allianz does not provide insurance coverage like life and hospitalisation insurance, it is not always a given that lower premiums will be achievable for ALL kinds of insurance coverage.

Only time will tell!