Life insurance industry could see more regulatory changes
By Thomas Cho | Posted: 06 March 2013 2232 hrs
SINGAPORE : Singapore's life insurance industry may be in for more regulatory changes.
Apart from the ongoing public consultation on the Financial Advisory Industry Review (FAIR) recommendations, the Monetary Authority of Singapore (MAS) will also be reviewing product offerings to retail customers.
In the insurance segment, micro-insurance, especially for lower income earners, annuities for retirees and long-term care insurance could be some of the products to be reviewed.
It has been challenging times for the insurance industry.
Tougher regulations and volatile asset returns are hitting the bottomlines of insurance companies.
Changing customer needs adds further pressure on insurance firms.
The FAIR panel issued some 28 recommendations in January.
This is to boost the standard of financial advice and product provision in the city-state.
The recommendations include remuneration for financial advisory representatives and having a direct channel to sell insurance to retail customers.
Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore, said: "Over the next few months, MAS will be working with the industry to review the state of product offerings to retail customers.
"First, are there significant product gaps in the market? There may be a genuine need for a product but market structures or conditions may inhibit the provision of such a product."
Newly-appointed president of the Life Insurance Association (LIA), Annette King, highlighted that there are a lot of regulations in the pipeline.
In 2012, LIA saw more than a dozen consultation papers from the MAS - two of them are considerably major. These are the FAIR and the Risk-Based Capital (RBC) framework for insurance business.
There are also other legislations that go beyond the MAS, such as on privacy and tax laws.
Ms King said these are the challenges for the industry to cope with.
She said: "The profitability question, there will no doubt be some impact as different companies choose different strategies in response to some regulatory change. But that is just part of business and different commercial entities will make choices."
The LIA has launched an education programme for Singaporeans to understand the importance of life insurance.
The total number of financial advisory representatives in Singapore stands at 13,528 at the end of 2012.
- CNA/ms By Thomas Cho | Posted: 06 March 2013 2232 hrs
By Thomas Cho | Posted: 06 March 2013 2232 hrs
SINGAPORE : Singapore's life insurance industry may be in for more regulatory changes.
Apart from the ongoing public consultation on the Financial Advisory Industry Review (FAIR) recommendations, the Monetary Authority of Singapore (MAS) will also be reviewing product offerings to retail customers.
In the insurance segment, micro-insurance, especially for lower income earners, annuities for retirees and long-term care insurance could be some of the products to be reviewed.
It has been challenging times for the insurance industry.
Tougher regulations and volatile asset returns are hitting the bottomlines of insurance companies.
Changing customer needs adds further pressure on insurance firms.
The FAIR panel issued some 28 recommendations in January.
This is to boost the standard of financial advice and product provision in the city-state.
The recommendations include remuneration for financial advisory representatives and having a direct channel to sell insurance to retail customers.
Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore, said: "Over the next few months, MAS will be working with the industry to review the state of product offerings to retail customers.
"First, are there significant product gaps in the market? There may be a genuine need for a product but market structures or conditions may inhibit the provision of such a product."
Newly-appointed president of the Life Insurance Association (LIA), Annette King, highlighted that there are a lot of regulations in the pipeline.
In 2012, LIA saw more than a dozen consultation papers from the MAS - two of them are considerably major. These are the FAIR and the Risk-Based Capital (RBC) framework for insurance business.
There are also other legislations that go beyond the MAS, such as on privacy and tax laws.
Ms King said these are the challenges for the industry to cope with.
She said: "The profitability question, there will no doubt be some impact as different companies choose different strategies in response to some regulatory change. But that is just part of business and different commercial entities will make choices."
The LIA has launched an education programme for Singaporeans to understand the importance of life insurance.
The total number of financial advisory representatives in Singapore stands at 13,528 at the end of 2012.
- CNA/ms By Thomas Cho | Posted: 06 March 2013 2232 hrs
SINGAPORE : Singapore's life insurance industry may be in for more regulatory changes.
Apart from the ongoing public consultation on the Financial Advisory Industry Review (FAIR) recommendations, the Monetary Authority of Singapore (MAS) will also be reviewing product offerings to retail customers.
In the insurance segment, micro-insurance, especially for lower income earners, annuities for retirees and long-term care insurance could be some of the products to be reviewed.
It has been challenging times for the insurance industry.
Tougher regulations and volatile asset returns are hitting the bottomlines of insurance companies.
Changing customer needs adds further pressure on insurance firms.
The FAIR panel issued some 28 recommendations in January.
This is to boost the standard of financial advice and product provision in the city-state.
The recommendations include remuneration for financial advisory representatives and having a direct channel to sell insurance to retail customers.
Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore, said: "Over the next few months, MAS will be working with the industry to review the state of product offerings to retail customers.
"First, are there significant product gaps in the market? There may be a genuine need for a product but market structures or conditions may inhibit the provision of such a product."
Newly-appointed president of the Life Insurance Association (LIA), Annette King, highlighted that there are a lot of regulations in the pipeline.
In 2012, LIA saw more than a dozen consultation papers from the MAS - two of them are considerably major. These are the FAIR and the Risk-Based Capital (RBC) framework for insurance business.
There are also other legislations that go beyond the MAS, such as on privacy and tax laws.
Ms King said these are the challenges for the industry to cope with.
She said: "The profitability question, there will no doubt be some impact as different companies choose different strategies in response to some regulatory change. But that is just part of business and different commercial entities will make choices."
The LIA has launched an education programme for Singaporeans to understand the importance of life insurance.
The total number of financial advisory representatives in Singapore stands at 13,528 at the end of 2012.
- CNA/ms
- wong chee tat :)
