Alvin Tan on social impact of proposed majority stake acquisition of Income Insurance by Allianz
The Government will continue to support the cooperative movement to ensure that the economic and social needs of Singaporeans are met and that these goods and services remain affordable and of good quality, said Minister of State for Culture, Community and Youth Alvin Tan. Replying to MPs’ questions in Parliament on Tuesday (Aug 6), Mr Tan said the Government values the role played by NTUC and its enterprises. He pointed out that NTUC Income was established in 1970 to provide Singaporeans, especially underserved workers, with essential and affordable insurance. But social enterprises must be sustainable, he said. Mr Tan said the insurance market is very competitive now, with many options available to Singaporeans. The Government has also significantly strengthened Singapore’s social support system, with public healthcare heavily subsidised. Mr Tan said Income has to operate in this new environment and pointed out that premiums for several of its schemes are not the cheapest in the market. Besides competitive pressures, there are also regulators who ensure that policyholders’ interests are protected, said Mr Tan. He stressed that Singaporeans, including lower-income workers, are well-served by national insurance programmes in Singapore’s competitive and well-regulated insurance industry. All these provide Singaporeans with wider choices and better value in insurance services and products, he said. The current situation for Income cannot be sustained, he added. Addressing concerns that the deal with Allianz may impact Income’s social objectives, Mr Tan said Allianz has committed to honour Income’s existing policies, participate in national insurance programmes and continue its charity commitments. NTUC and Income have given the assurance to keep premiums affordable for Income’s low-cost schemes for its members. “Ultimately, the best way to keep prices affordable is to facilitate competition, ensure options for customers and put in place a sound regulatory framework. And that is what the Government is committed to doing,” he said.
The Government will continue to support the cooperative movement to ensure that the economic and social needs of Singaporeans are met and that these goods and services remain affordable and of good quality, said Minister of State for Culture, Community and Youth Alvin Tan. Replying to MPs’ questions in Parliament on Tuesday (Aug 6), Mr Tan said the Government values the role played by NTUC and its enterprises. He pointed out that NTUC Income was established in 1970 to provide Singaporeans, especially underserved workers, with essential and affordable insurance. But social enterprises must be sustainable, he said. Mr Tan said the insurance market is very competitive now, with many options available to Singaporeans. The Government has also significantly strengthened Singapore’s social support system, with public healthcare heavily subsidised. Mr Tan said Income has to operate in this new environment and pointed out that premiums for several of its schemes are not the cheapest in the market. Besides competitive pressures, there are also regulators who ensure that policyholders’ interests are protected, said Mr Tan. He stressed that Singaporeans, including lower-income workers, are well-served by national insurance programmes in Singapore’s competitive and well-regulated insurance industry. All these provide Singaporeans with wider choices and better value in insurance services and products, he said. The current situation for Income cannot be sustained, he added. Addressing concerns that the deal with Allianz may impact Income’s social objectives, Mr Tan said Allianz has committed to honour Income’s existing policies, participate in national insurance programmes and continue its charity commitments. NTUC and Income have given the assurance to keep premiums affordable for Income’s low-cost schemes for its members. “Ultimately, the best way to keep prices affordable is to facilitate competition, ensure options for customers and put in place a sound regulatory framework. And that is what the Government is committed to doing,” he said.
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