16 August 2024
The Insurance Authority (IA) published its latest issue of Conduct In Focus today (16 August 2024) presenting the latest complaint statistics and disciplinary actions and providing insurance practitioners and policy holders with information on topical insurance-related issues.
Our headline article takes a deep dive into the role of insurance brokers in the life insurance market. We look at the standards, controls and processes demanded by the IA on referral business in our circular of 22 May 2024 to stop policy holders (particular Mainland China Visitors) from being put at risk of unlicensed selling. We also highlight how this will continue to be a priority in our regulatory and enforcement work going forward, including our broader considerations on how commission structures must be aligned with the “treating customers fairly” principle.
Other topics covered include best practices for general insurers on sending out renewal notices; a call to action for insurers and broker companies to join the SMS Sender Registration Scheme to protect customers from scams; highlighting the benefits to policy holders of using insurers’ online self-service portals; and the restructuring of the IA’s Market Conduct Division into the Conduct Supervision Division and the Enforcement Division to underpin the IA’s dual emphasis on prevention and deterrence.
We also highlight how, from 23 September 2024 onwards, the IA will start charging fees for processing insurance intermediary licensing applications and related notifications as the five-year waiver period comes to an end. The final fee structure has taken full account of feedback received from stakeholders in the industry consultation conducted by the IA. The fees serve as an additional income stream to assist in sustaining the IA’s capacity over the long term to perform its public functions of regulating the insurance industry to promote the general stability of the industry and protect policy holders.
Finally, this edition of Conduct In Focus is also now available in audio format, so enjoy listening!
Ends