| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: The Monetary Authority of Singapore (MAS) wants greater transparency in the disclosure of charges for insurance products. This is to help consumers be more aware of what they are paying for.
The call came during an industry on Wednesday. According to Mr Low Kwok Mun, MAS Executive Director of Insurance Supervision, there is a need for clearer distinction between insurance and savings products.
He said many current insurance products do not show how much of the premiums paid goes towards providing protection coverage.
As a result, policyholders are not able to make a cost-benefit assessment of the protection they have purchased.
Mr Low added that MAS is exploring how to instill greater transparency so consumers are more aware of the amount of coverage being purchased and the costs associated with each component.
The MAS also called on companies to focus on insurance products that cater to consumer's needs such as life and health insurance and less on riskier investment-linked products.
Mr Low said: "Compared with 2008, health insurance sales in 2009 grew by 31 per cent to S$146 million while regular premium non-participating new business which consists mainly of Accident and Health and Term Policies grew by 13 per cent.
“While this is encouraging, I would like to urge all life insurers to keep this momentum on sales of protection plans going instead of being driven only by business considerations."
The Life Insurance Association also appointed a new President on Wednesday, Mr Tan Hak Leh, the Managing Director of Great Eastern Life.
He said improving industry standards is one of three areas he has chosen to focus on this year.
He said: "It's an area that we fully support, at the moment, LIA has specific guidelines on disclosure, on product disclosure, which include disclosure of charges. We're always looking for ways to further improve on that aspect of the business."
Mr Tan added that consumer education is another area that LIA will focus on. - CNA/vm
|
