Limiting advisor commissions – it’s a global trend, but a leading financial services jurisdiction is aiming to cut out advisors altogether.
An Asian bank is going straight to consumers, cutting advisors out.
The Monetary Authority of Singapore instituted the Direct Purchase Insurance (DPI) initiative last week in a bid to exclude advisors and incurring commissions.
With many experts recommending insurers position more of their offerings direct to consumers, and an increasing number of insurers following through on the premise this could be a real threat to Canadian advisors.
The Singapore DPI comprises term life insurance products with total and permanent disability (TPD) cover; whole life insurance products with TPD cover; and optional critical illness riders attached to term life or whole life insurance products.
A portal was set up by the Life Insurance Association Singapore (LIA), MAS, Consumers Association of Singapore and MoneySENSE and features five categories of insurance products: term life insurance, whole life insurance, endowment policies, DPIs, and investment-linked life insurance policies.
A dozen insurance companies are listed on the web aggregator, such as AIA Singapore, AXA Life Insurance, Aviva, Great Eastern Life Assurance, NTUC Income and Prudential.
LIA said that its priority is to “help individuals make better informed choices when making their purchase of life insurance products”.
It added: “We believe that these two initiatives will provide individuals more choices and help them make better informed decisions when purchasing insurance.”
The Monetary Authority of Singapore instituted the Direct Purchase Insurance (DPI) initiative last week in a bid to exclude advisors and incurring commissions.
With many experts recommending insurers position more of their offerings direct to consumers, and an increasing number of insurers following through on the premise this could be a real threat to Canadian advisors.
The Singapore DPI comprises term life insurance products with total and permanent disability (TPD) cover; whole life insurance products with TPD cover; and optional critical illness riders attached to term life or whole life insurance products.
A portal was set up by the Life Insurance Association Singapore (LIA), MAS, Consumers Association of Singapore and MoneySENSE and features five categories of insurance products: term life insurance, whole life insurance, endowment policies, DPIs, and investment-linked life insurance policies.
A dozen insurance companies are listed on the web aggregator, such as AIA Singapore, AXA Life Insurance, Aviva, Great Eastern Life Assurance, NTUC Income and Prudential.
LIA said that its priority is to “help individuals make better informed choices when making their purchase of life insurance products”.
It added: “We believe that these two initiatives will provide individuals more choices and help them make better informed decisions when purchasing insurance.”
