Last week, Mr Low Kwok Mun, Executive Director of Insurance Supervision of MAS spoke at the Life Protection Seminar organised by Life Insurance Association (LIA) and the Singapore Actuarial Society (SAS).
Among the points he bought up were:
Going forward, Mr Low hopes that LIA and the insurance companies will work together to ensure that their commission structures do not cause advisers to form a bias towards recommending specific products.
I think this will be a tough act as it will take a brave insurance company to make the first move of changing their tried and tested commission structure. Any change will probably have to come as a result of top down intervention. The speech by Mr Low is a strong hint though.
In the meantime, everyone should continue to educate themselves so that they are not taken for a ride by unethical insurance agents. A good place to start would be to read the insurance guides published by MoneySense.