Measures to Enhance Insurance Protection and Coverage for SMEs

Mr Don Wee asked the Prime Minister (a) what measures are there to enhance insurance protection for small and medium-sized enterprises (SMEs) against internet crimes and scams; (b) whether MAS can work with insurers and SMEs in obtaining insurance coverage against such internet crimes and scams; and (c) whether the insurance sector has a strong pipeline of Singaporean actuaries managing the risks of such crimes.

There are effective steps that small and medium enterprises (SMEs) can take to enhance their digital security. In the same way that we all need to protect ourselves against scams, a culture of vigilance should likewise prevail among SMEs and their employees to recognise phishing attempts and fraudulent emails. They must not disclose the banking credentials of their company. SMEs should also avail themselves to the SG Cyber Safe Programme and its cybersecurity certification scheme, invest in anti-virus programmes and install the ScamShield app on company mobile devices, which automatically blocks scam calls and detects scam messages.

Insurance solutions are currently not an effective means of protection against Internet crimes and scams. The rapidly evolving nature of Internet crimes and scams and limited risk assessment data, make it challenging for insurers to effectively quantify, price and underwrite these risks. In addition, insurance policies typically exclude loss events where there has been contributory negligence on the part of the victim. This is a fundamental principle in insurance that insured parties cannot relinquish personal responsibility and rely on insurance to cover consequent losses. In most scams, victims may not have exercised sufficient care when clicking on fraudulent weblinks or disclosing banking credentials.

Combating scams requires constant vigilance and awareness. SMEs and the public at large should subscribe to the Singapore Police Force's scams bulletin so that they can be alerted to the latest scam typologies. We will continue to strengthen our public education efforts and collaborate closely with all stakeholders to enhance public protection against Internet crimes and scams.