The Life Insurance Association Singapore (LIA) provides guidelines on the sales advisory process for life insurance products as well as the requirement for certain product disclosure documents. In the sales advisory process, insurance advisers are required to offer a choice of fact-find options, namely, full advice, partial advice, product advice or no advice.
Proportions of sales based on full or partial fact-find process have increased. In 2011, 74 per cent of life insurance policies purchased were based on full (10 per cent) or partial (64 per cent) fact-find as selected by the clients.
Proportions of sales based on full or partial fact-find process have increased. In 2011, 74 per cent of life insurance policies purchased were based on full (10 per cent) or partial (64 per cent) fact-find as selected by the clients.
We note the specific findings of the MAS mystery shopping survey and the shortcomings, which require the industry's further attention.
The LIA supports the recommendation for industry to undertake mystery shopping exercises. We see this as a further initiative to enhance the effectiveness of the life insurance sales advisory process.
A recent consumer survey commissioned by the Life Insurance Association also provides insight. Door-to-door interviews of 800 respondents representing Singapore’s demographics were conducted between November 2011 and January 2012 by an independent market research company.
A majority of Singaporeans and permanent residents perceive the Singapore industry well and trust the life insurance representatives who serve them.
- 72 per cent are “Very Satisfied” and “Satisfied” with the life insurance industry as a whole.
- 69 per cent of Life Insurance Users rely on only one trusted agent.
- 92 per cent of Life Insurance Users who went through a full/partial fact-find in the past 3 years say they benefited from the process.
The LIA survey shows that consumers who have an on-going relationship with a representative are generally well served.
Both LIA and member companies will continue to support MoneySENSE initiatives as well as contribute in various ways toward raising financial literacy levels among Singaporeans.
Tan Hak Leh
President, LIA
Both LIA and member companies will continue to support MoneySENSE initiatives as well as contribute in various ways toward raising financial literacy levels among Singaporeans.
Tan Hak Leh
President, LIA
Source: http://www.lia.org.sg/node/3200
