FIRST ICCSC RELEASES LATEST INDUSTRY BEST PRACTICES SINGAPORE
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ingapore’s Insurance Culture and Conduct Steering Committee (ICCSC) has released its third set of guidelines on ‘Intermediary Culture and Conduct Best Practices – Promoting Ethical Culture and Conduct in Insurance Intermediaries (Life), focusing on enhancing standards for financial adviser representatives (FA Reps) and Financial Adviser Firms (FAFs). This is part of the Committee’s continued efforts to elevate the culture and conduct standards of the life insurance ecosystem in Singapore by focusing efforts on people, performance, and processes. The first two papers focusing on Human Resources and Corporate Governance were released in March 2022. Third paper The third paper aims to enhance the quality of the financial advisory service sector through the practices of FA Reps and FAFs by providing the following: • Guidance on the role of supervisors in setting the right tone from the top to ensure accountability from leadership that priorities are not only placed on achieving sales and revenue growth. • Best practices on establishing key performance measures that effectively encourage FA Reps to provide customers with highquality financial advisory services. • Collaboration on enhanced disclosures to customers and information sharing between insurers and non-tied FAFs to align and protect customers’ interests through regular engagements and dialogues with recommendations centred on Proper Disclosure to Customers on Products and Incentives, as well as the Sharing of Sales Quality Data to improve Culture and Conduct. “We aim to enhance professionalism within the industry more consistently and elevate the standard of care for customers in the advisory process,” said Dr. Khoo Kah Siang, Chairperson of the ICCSC.v 8 INSURANCE ASIA
More than half do not have disability income protection
2 in 3 Singaporeans worried about losing job due to illness or disability SINGAPORE
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wo in three or 66% of Singaporean workers are worried about losing their jobs due to illness or disability or both, according to the AIA Disability Income Survey 2022. The survey was conducted in April 2022 amongst more than 1,000 respondents consisting of full-time working Singapore residents ages 18 and above. The survey revealed that despite being worried about losing their jobs due to illness or disability, 53% do not have disability income protection. Singapore workers have different ways to survive the implications of a job loss due to illness or injury. Most (66%) said they will cut down on spending. 63% said that they will rely on savings whilst 58% said they will look for another job where other tasks or duties can be done. Only around 50% will rely on insurance to cover the financial risks of losing their jobs. Awareness More than four in five know that disability income protection exists. The survey also revealed that blue collar workers (42%) deemed disability income insurance as an important coverage to have compared to white collar workers (29%). The AIA Disability Income Survey 2022 survey also listed that the top two reasons for getting disability income
Melita Teo
Understanding the pain points of disability income plans allows us to better address Singaporeans’ concerns
protection are to have peace of mind if anything happens (53%) and to ensure that there is financial support for loved ones if unable to work (51%). What’s preventing most to purchase this type of insurance is product complexity, complicated processes, and high premiums. In fact, one in four (25%) of females cite the cost of premiums as a reason for not having disability income protection compared to less than one in five (16%) of males. This was the most selected reason amongst females. However, 22% of men said they did not have disability income protection because they don’t think they need it – the most selected reason amongst males. Only 13% of women chose this reason. “Losing one’s job and becoming dependent on others due to an unexpected accident or illness is painful and places heavy financial and emotional burdens on a person and their loved ones. Understanding the pain points of disability income plans allows us to better address Singaporeans’ concerns which range from affordability, to ease of getting insured and making a claim. These are key priorities which informed how we developed the AIA Pay Protector to make disability income protection accessible to even more members of the community,” Melita Teo, Chief Customer and Digital Officer at AIA Singapore said.
