Consultation Aims to Simplify Insurance Processes While Protecting Consumers
The Monetary Authority of Singapore (MAS) is seeking feedback on proposals to reduce the amount of client information that financial institutions need to collect for certain insurance products, particularly term life insurance and standard critical illness policies.
Key Proposals
The proposals are aimed at simplifying the process for consumers and promoting the offer of simple and cost-effective products to meet protection needs.
These changes will apply to policies recommended based on the Basic Financial Planning Guide, which was introduced in October 2023 to help Singaporeans with their financial well-being.
The guide encourages consumers to allocate a portion of their income towards insurance protection and sets guidelines for coverage on death, disability, and critical illness.
Industry Responses
Insurers are adjusting to these changes, with some acknowledging that it will significantly reduce the personal data financial representatives must gather.
Great Eastern’s Colin Chan emphasized the need for insurers to work with MAS to balance customer choice and compliance with the new rules.
