At the Life Insurance Association of Singapore (LIA) AGM held a few days ago, Mr Low Kwok Mun, Executive Director (Insurance Supervision) of MAS addressed a few things affecting the insurance industry in his speech.
Some of his points include:
- Reminding the industry not to neglect the important social role which only insurers can play, which is to ensure that the protection needs of Singaporeans are met. By and large, most Singaporeans are still under-insured.
- Urging the industry to step up on consumer eduction with a focus on what consumers do not understand. This includes:
- Understanding on how bonuses of participating policies are determined.
- Charges for investment-linked products (ILP).
- Claims for medical insurance being invalidated due to pre-existing conditions and confusion over whether certain medical procedures are admissible for claims.
- Clearer transparency and disclosure between the savings and protection charges in an insurance policy.
While the points mentioned are very relevant, I am not so sure whether they will lead to much changes in the absence of regulatory changes. Urging is hardly a strong enough incentive.
Actually, a lot of complaints and misunderstandings can be avoided if insurance policies are carefully explained at the point of sale. In this aspect, the industry still have a lot of room for improvement.