The Monetary Authority of Singapore (MAS) has announced that it will classify investment-linked policies (ILPs) as complex products, in a move seen as strengthening consumer safeguards and ensuring that buyers have an adequate understanding of the risks and features of such offerings.
In a speech, MAS Assistant Managing Director Marcus Lim said the classification reflects the hybrid nature of ILPs, which combine insurance protection with investment elements, and signals the need for more robust financial advice and clearer disclosures for retail customers.
During his speech at the Life Insurance Association Singapore Annual Luncheon on 30 March 2026, he also underscored that the insurance sector’s credibility rests on whether insurers honour the commitments made to policyholders.
Mr Lim also stated that more work needs to be done to improve the sector, particularly in ensuring consistent customer outcomes across the industry. He noted that delays, disputes, or a lack of clarity in claims processes can erode confidence, even when products are otherwise well designed. He called on insurers to strengthen internal processes, enhance transparency, and make greater use of data and technology to improve service standards and deliver better policyholder experiences.
Looking ahead, he sees regulatory and industry efforts continuing, focusing on aligning business practices with long-term customer interests. This includes promoting clearer communication, improving financial advice standards, and reinforcing accountability within insurers.