Regulatory Review of Consumer Safeguards in Insurance and E-commerce Partnership Models

Mr Melvin Yong Yik Chye asked the Prime Minister and Minister for Finance whether the Monetary Authority of Singapore intends to amend the Insurance Act to ensure that consumers' interests are protected, as insurance and financial services firms partner e-commerce platforms to distribute their products.

Financial institutions (FIs) may distribute a variety of financial products through different channels, which may include e-commerce platforms.

All FIs and their intermediaries are expected to uphold proper conduct and put in place consumer safeguards when distributing products. When advertising on e-commerce platforms, they are also expected to assess whether the platforms are able to comply with their own digital advertising practices.

Under the Insurance Act, general insurance agents distributing general insurance products, including through e-commerce platforms, must be registered with the General Insurance Association's Agents' Registration Board (ARB) and comply with the ARB's rules on professionalism, conduct and competency standards. Agents that fail to comply with ARB's rules may face disciplinary actions including cancellation of registration.

Current safeguards are adequate, but we will continue to assess the evolving landscape and introduce new safeguards if necessary.