Singapore: Launch of comparison website and no commission policies
Source: Asia Insurance Review | May 2015
Customers in Singapore are now able to compare insurance products online and even purchase a select range of products directly from insurers without any intermediaries.
Consumers can compare life insurance products of different companies using a new web portal called compareFIRST (www.comparefirst.sg). A collaborative effort by various organisations including the regulator, the portal will help consumers make informed decisions about what policy to buy and how much coverage to get.
Enhance transparency and boost competitiveness
The Life Insurance Association of Singapore (LIA), which set up the portal, said: “We believe that these two initiatives will provide individuals more choices and help them make better informed decisions when purchasing insurance.”
The web portal is also expected to enhance transparency and boost competitiveness among life insurers, encouraging companies to further develop their own products.
It could also help less well-known players in the industry to reach out to more consumers, say observers.
Policies with no commission
The Direct Purchase Insurance (DPI) initiative, which was implemented by the Monetary Authority of Singapore (MAS), comprises term life insurance products with total and permanent disability (TPD) cover, whole life insurance products with TPD cover, and optional critical illness rider attached to term life or whole life insurance products. It is designed to meet the basic protection needs for individuals.
Both compareFirst and DPI are initiatives under the Financial Advisory Industry Review or FAIR.