S’pore regulator proposes simplified process for affordable insurance policies

MAS now proposes to reduce information requirements for term life insurance and standard critical illness policies.

The Monetary Authority of Singapore (MAS) has released a consultation paper seeking feedback on proposals to streamline information collection by financial institutions for selected insurance policies. 

The aim is to simplify the process and facilitate the purchase of uncomplicated and affordable insurance policies, aligning with the Basic Financial Planning Guide, MAS said in a press statement.

Launched in October 2023, the guide provides rules of thumb for financial well-being, encouraging Singaporeans to allocate up to 15% of their take-home pay on insurance protection. 

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MAS now proposes to reduce information requirements for term life insurance and standard critical illness policies based on guide recommendations, simplifying the advisory process and ensuring consumer protection through set limits. 

Lim Tuang Lee, Assistant Managing Director (Capital Markets), MAS, emphasised the proposals' goal of facilitating cost-effective insurance coverage while safeguarding consumer interests with guide-prescribed limits.