Deferment of premium payments during Covid-19: Insurance firms must buck up
The writer was disappointed with the “lackadaisical” attitude of insurance firms.
The Monetary Authority of Singapore (MAS), in partnership with the financial industry, announced on March 31 a slew of measures to ease the financial strain on individuals owing to the Covid-19 pandemic.
One measure is to allow individuals who are adversely affected to defer life and health insurance premiums for up to six months while keeping their insurance coverage.
The actions of the insurance companies are lackadaisical as far as my experience goes. I have received empathetic email messages from chief executive officers of the insurance firms about their support measures, but the empathy stops at their words.
I asked my agents and most were unsure of the process. I called all the insurance companies and realised every company has different procedures and processes to handle applications for the deferment of premiums.
After submitting the application forms, I was told that the outcome would be known in a few working days. I wonder whether by then, when they do approve the deferment, April premiums would already have been deducted in full.
MAS should have made clear its expectations to the insurance industry to handle this as efficiently as possible. The General Insurance Association of Singapore (GIA) should have harmonised the processes of its member firms, and spare the pain of consumers like me who try to engage each and every insurance firm for this purpose.
GIA could also educate the public about this scheme, so that affected customers can avail themselves of the benefits of deferment.
To ensure consumers are not disadvantaged if the insurance companies delay processing the applications, GIA could also advise consumers that they could stop payment of the April premium, since all policies would have a grace period of up to 30 days. Its member companies can then sort out the deferment applications at the back end.
Furthermore, why have the insurance companies not asked their agents to approach clients and help them with the applications?
Insurance companies and financial institutions are at the forefront of technology and artificial intelligence. Why have they not automated these mundane processes?
Earning public trust is important, especially in this critical period. I urge GIA and the insurance companies to be more empathetic and help Singaporeans weather this fight against the pandemic.
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