Debated in Parliament on 4 Nov 2025.
Mr Ng Shi Xuan asked the Prime Minister and Minister for Finance (a) whether the Government proactively monitors cases where insurance companies have unreasonably denied or litigated legitimate claims, in addition to acting on complaints; and (b) what actions has the Government taken to penalise errant insurers for such behaviour.
Insurers are expected to promptly pay all legitimate claims, and to be facilitative and fair to claimants during the claims handling process. This includes providing clear instructions on documents required for claims submission, as well as having sound internal processes to validate the claims.
The Monetary Authority of Singapore's (MAS') Guidelines on Fair Dealing sets out how licensed financial institutions, including insurers, are expected to treat customers fairly at various stages of the customer journey. In addition, MAS' Guidelines on Risk Management Practices for Insurance Business sets out supervisory expectations for proper claims handling.
Where insurers fall short of our expectations, MAS will take appropriate action, which could involve requiring the insurer to review its policies and procedures to prevent recurrence, as well as its restitution to the consumer.
Consumers who believe their claims have been unfairly rejected should first contact their insurers, who are required to handle complaints independently, effectively and promptly. If a satisfactory resolution cannot be reached, consumers may file for mediation or adjudication at the Financial Industry Disputes Resolution Centre (FIDReC), which offers independent, impartial and low-cost dispute resolution services.
Over the last three years, FIDReC completed, on average, 246 mediation and adjudication annual insurance claims related to disputes on claim liability and amounts awarded, while MAS received an average of 91 such similar complaints per year. These represent less than 0.01% of claims received by insurers. FIDReC continues to provide an important and effective mechanism for resolving consumer disputes. More than 85% of claims handled by FIDReC were either resolved at mediation or adjudication. Less than 0.1% of claims received by the larger direct insurers, which account for 80% share of the local market, were litigated.
PAPERCUTS