SINGAPORE: Sales of investment-linked policies (ILPs) have actually more than doubled in 3 years, even as claims over supposed misstatement and insufficient disclosure keep climbing up.Weighted brand-new company premiums– a step of brand-new sales– have actually increased for 3 successive years after falling in 2022 in the middle of increasing rate of interest and market volatility, stated the Life Insurance Association (LIA).They reached S$ 2.88 billion (US$ 2.2 billion) in 2025, up from S$ 1.31 billion in 2022, stated the association’s executive director Chan Wai Kit.“This represents development of around 120 percent over 3 years, consisting of a 27.8 percent year-on-year boost in 2025,” he stated.Over the very same duration, declares associated to ILPs at the Financial Industry Disputes Resolution Centre (FIDReC) increased from 42 in 2022 to 164 in 2025. This consisted of a spike in 2024, which saw 211 claims. The market arbitrator saw 104 claims in the very first half of 2026, compared to 61 in the exact same duration a year previously.The claims usually centre on accusations of market conduct, such as misstatement, insufficient disclosure of details about ILPs or unsuitable monetary suggestions.For many years, the profile of plaintiffs has actually moved towards older age, stated FIDReC president Eunice Chua. Claims from those aged 61 and above comprised 35 percent of the overall in the very first half of 2026, up from 7 percent in 2022.Mediation sessions revealed that numerous customers do not have a mutual understanding of the item, typically presuming it resembles conventional insurance coverage or that returns and capital are ensured. Some are likewise uncertain about the costs and charges or the premium dedication term.
WHY HAS DEMAND INCREASED?
2 style modifications to ILPs represent much of the current development, stated Alex Lee, president of the Singapore Actuarial Society.Standard policies well balanced security and financial investment, needing clients to finish prolonged health underwriting surveys, he stated. More recent ones bring just very little death cover, so they can be released with couple of or no health underwriting concerns.The “welcome benefit” that numerous more recent ILPs use might likewise have actually stimulated sales, stated Mr Lee, describing additional systems in the fund that are offered to the client when they initially buy the policy, so they are holding more than they spent for.He kept in mind, nevertheless, that the perk is normally moneyed through greater charges in the early years and includes a minimum financial investment duration.
