Digital Curator, Author at Insurance Agency Singapore | Commercial Insurance and Personal Insurance

Fake travel insurance cases rise

26 April 2016 By Digital Curator Leave a Comment

Image via Flickr user Henri Bergius

While motor insurance fraud has traditionally been a huge worry for insurers, companies are seeing an emerging trend – dubious travel insurance claims.

The General Insurance Association (GIA) said the sector is growing fast as more people go overseas and also because of heightened awareness of the need for coverage.

Along with personal accident and health, travel insurance accounted for 21.6 per cent of the total general insurance business last year – up from 19.8 per cent and 18 per cent in 2014 and 2013, respectively.

Although the GIA has not collated figures, it set up a workgroup last year to tackle the relatively new problem.

Its president, Mr A. K. Cher, told The Straits Times: “We have people who are now travelling at the expense of insurance companies.”

“But one of them still somehow had a credit card to pay for their way home,” he said. “When we checked, we found they had all bought travel insurance from eight companies here.”

The GIA is now looking to data analytics to help crack down on such cases. Mr Cher said it is working with French start-up Shift Technology to sieve through data to identify anomalies. Fraud aside, “they will be able to see if we have overpaid for a certain type of claims, for instance”, he added.

Insurers have also hired former investigators from the Commercial Affairs Department to go after cheats.

Gross motor premiums collected stood at $1.14 billion, down from $1.19 billion previously.

The general insurance business on the whole – including fire, work injury and marine cargo and hull – posted an underwriting profit of $325 million, 17 per cent lower than 2014’s $392 million.

An earlier version of the story missed out the word “former” in the sentence “Insurers have also hired former investigators from the Commercial Affairs Department to go after cheats”. We are sorry for the error.

by Christopher Tan

See Full Story at straitstimes.com

Budget 2016 Plan: Ease taxes to create global insurance hub

21 April 2016 By Digital Curator Leave a Comment

Image via Flickr user Washington State House Republicans

SINGAPORE has ambitions to be not just a regional insurance hub in Asia but also a global insurance hub. However, we are not there yet, nor are we alone in our aspirations. What can be done to help Singapore to leapfrog ahead?

In a keynote address in November 2013 at the 12th Singapore International Reinsurance Conference, Ravi Menon, managing director of the Monetary Authority of Singapore, outlined Singapore’s vision of being “a global insurance marketplace in the heart of Asia”. The vision is for the Singapore insurance industry to have the ability to accept not just regional but global risks by 2020.

Currently, there are two competitors in the race to become the next global insurance marketplace in Asia – Hong Kong and Singapore. Both Hong Kong and Singapore have similar elements in place – fairly liberalised insurance markets, sound regulations, and simple and efficient tax regimes. Both also enjoy strategic geographical locations: Hong Kong with China as hinterland and Singapore as a gateway to South-east Asia and the ASEAN Economic Community.

They also both stand to benefit from the same three key factors driving insurance demand in Asia – rising economic growth in the region (a growing middle class, urbanisation, continued industrialisation and expanding cross-border trade will lead to an increased demand for insurance solutions from businesses, as well as demand for more sophisticated personal financial services such as insurance); Asia’s vulnerability to natural catastrophes; and Asia’s rapidly ageing population. The increasing use of technological solutions and devices has given rise to new and emerging risks. In addition, global environmental and climate change will bring larger risks and uncertainties. All of this points to a growing demand for insurance, not only at a regional level but likely at a global level too.

by Ang Sock Sun, Yip Yoke Har, Woo Shea Leen

See Full Story at news.asiaone.com

General insurance industry of Singapore saw premiums rise to S$3.6b in 2015

19 April 2016 By Digital Curator Leave a Comment

Image via Flickr user Blind Nomad

However, there was a 17 per cent drop in total underwriting profit to S$325 million amid the slowing economy and increased competition.

SINGAPORE: Singapore’s general insurance industry posted a 2.6 per cent growth in total gross premiums to S$3.6 billion in 2015.

However, margins declined amid the economic slowdown and increased competition, resulting in a 17 per cent drop in total underwriting profit to S$325 million, according to the General Insurance Association on Thursday (Mar 17).

Underwriting profit is the amount of premiums earned after claims have been paid and administrative expenses accounted for.

The motor insurance class, which makes up 32 per cent of the general market, saw a 4 per cent drop in gross premiums to S$1.1 billion in 2015, due to heightened competition and the falling car population. On average, motor premiums fell by about 3 per cent, partially accounting for the 20 per cent fall in underwriting profit.

Meanwhile, underwriting profit in the work injury compensation class jumped 92 per cent, while profits fell in both the fire and personal accident segments.

by Nicole Tan

See Full Story at channelnewsasia.com

Research and Markets Releases Singapore Insurance Industry Governance, Risk and Compliance Report 2016

14 April 2016 By Digital Curator Leave a Comment

Image via Flickr user GotCredit

The ‘Governance, Risk and Compliance – The Singaporean Insurance Industry’ report is the result of extensive research into the insurance regulatory framework in Singapore.

Key Highlights:

– The Singaporean insurance industry is supervised and regulated by the Monetary Authority of Singapore.

– The favorable foreign direct investment (FDI) regime, which allows up to 100% foreign participation, will encourage international insurance companies to enter the Singaporean insurance industry.

– The direct placement of non-admitted insurance and reinsurance is prohibited in Singapore.

– Composite insurance licenses to carry on both life and general insurance business in Singapore are granted by MAS.

– Motor vehicle third-party liability insurance, workmen’s compensation insurance and government health insurance are compulsory in Singapore.

See Full Story at finance.yahoo.com

Singapore is still top re/insurance hub in Asia

12 April 2016 By Digital Curator Leave a Comment

Image via Flick user GotCredit

Singapore is likely to maintain its position as the pre-eminent re/insurance hub in Asia, despite the emergence of rival centres in the region, according to Axco Insurance Information Services.

There are two distinct forces driving the Singapore market, which are diametrically opposed to each other, according to Axco’s latest report. The Competition Commission is active in trying to ensure personal lines business remains as affordable as possible. At the same time, the regulator is under pressure from international financial institutions to ensure the enhanced solubility of the market by introducing stricter solvency rules and enterprise risk management regimes, said Axco.

Offshore business increased in volume from $1.5 billion to $6.1 billion in the seven years to 2013 and much of this has been driven by reinsurance in the region, according to the data. Whilst the larger reinsurers maintain offices in other parts of Asia – Hong Kong, Shanghai, Kuala Lumpur and Labuan – Singapore remains the location of choice for a single Far East regional operation.

“The implementation of freedom of services across the 10 Association of Southeast Asian Nation (ASEAN) member states which is predicted to apply to re/insurance in the next few years will further boost an already strong market.”

See Full Story at intelligentinsurer.com

Singaporeans’ travel plans and insurance, feared to be affected by the Zika virus

24 March 2016 By Digital Curator Leave a Comment

Image via Flickr user Matthew Hurst

Based on the number of inconsiderate neighbours breeding mosquitoes in the potted plants on their HDB balconies, Singaporeans aren’t that afraid of dengue fever.

But when it comes to the zika virus, people are a lot more wary. There may not have been any confirmed cases of zika virus infection in Singapore to date, but the horror stories of a purported link between zika virus infection and birth defects have made people sit up and take notice.

But based on the exclusions travel insurance companies typically insert, here are some things you should know.

The main risks of a zika virus infection

The problem with the zika virus is that you have it without exhibiting any symptoms. Heck, for all you know, all of us could be infected right know without even knowing it.

When you travel, your main concerns about the zika virus should be:

Coming down with symptoms and needing to seek medical treatment.

Now, where things get more serious is if you or your partner are pregnant, and the zika virus results in a birth defect.

You might choose to cancel or change the dates of your trip to avoid the zika virus.

What does your travel insurance cover?

Never assume your travel insurer will cover every possible mishap under the sun.

You are usually not allowed to make any pregnancy or childbirth-related claims.

You will not be covered when travelling overseas against medical or government advice.

Cancelling or changing your travel plans.

Medical expenses overseas.

Where are the affected countries?

In case you’re about to book your next big holiday and want to avoid locations experiencing zika virus outbreaks or transmissions, here’s the list from NEA as of 27 Jan 2016:

Countries experiencing outbreaks: Brazil, Cape Verde, Colombia, El Salvador, Honduras, Martinique, Panama, Suriname

Countries with local transmission or exported cases: Barbados, Bolivia, The Dominican Republic, Ecuador, French Guiana, Guadeloupe, Guayana, Haiti, Mexico, Paraguay, Puerto Rico, Saint Martin, Samoa, Thailand, US Virgin Islands, Venezuela

What are some airlines, cruiselines and hotels doing in response?

Some airlines, cruiselines, hotels and travel companies are allowing travellers to change their travel plans free of charge or offering refunds in light of the zika virus issue.

The list of companies that have done so include United Airlines, JetBlue, American Airlines, British Airways and Delta Airlines. If you’re scheduled to fly or are about to book your tickets, call up the airline and ask about their policies. Some will require a doctor’s letter before they’ll let you rebook or cancel.

Hotel chains may be willing to offer cancellation waivers as well, although these are rarely articulated officially. Hilton claims it will be doing so on a case-by-base basis. When in doubt, it’s best to check before making a booking.

In all honesty, if you’ve already booked a trip and are not a pregnant lady, it’s probably more worthwhile to safeguard against being bitten by mosquitoes than it is to go nuts over the news reports.

by Joanne Poh

See Full Story at news.asiaone.com

Singapore’s life insurance business grew 9% in Q4 2015

22 March 2016 By Digital Curator Leave a Comment

Image via Flickr user Brian Evans

SINGAPORE’S life insurance business grew 9 per cent year on year to S$832.2 million in the fourth quarter of 2015 in total weighted new business premiums – a way to measure the growth of the life insurance industry – lifted by sales of non-linked weighted single-premium plans.

Weighted annual premium sales for the quarter inched up marginally by one per cent to S$550.3 million.

Weighted single-premium sales rose 9 per cent to S$940.8 million in 2015, of which single premium-linked sales comprised 26 per cent, while CPF-funded policies made up 16 per cent.

In 2015, weighted annual premium sales rose 7 per cent to S$2.06 billion.

He added that the Integrated Shield Plan (IP) insurers have been working with the Ministry of Health on the standard class B1 plan, which will be announced soon.

by Claire Huang

See Full Story at businesstimes.com

HK and Singapore sales explored by Zurich Insurance

17 March 2016 By Digital Curator Leave a Comment

Image via Flickr user United Way California Capital Region

Zurich Insurance is exploring a sale of its Hong Kong and Singapore operations as it reviews its non-core businesses outside Europe, sources familiar with the matter said.

The Swiss insurer has discussed the plan with several investment banks but has yet to hire advisers, the sources said, cautioning that no deal was certain.

The Swiss insurer launched an in-depth review of its business in September after explosions at the Chinese port of Tianjin caused losses of around $275 million. It had also abandoned a 5.6 billion pound bid for Britain’s RSA Insurance after a “deterioration” in its general insurance business.

Asian franchise

A partial exit from Asia will need the blessing of Zurich’s incoming boss Greco.

The 56-year-old executive will take over the reins in March from Tom de Swaan, who has held the role on an interim basis since Martin Senn stepped down in December.

“It’s up to Greco to take the final decision on Asia,” one of the sources said.

If a sale goes ahead, Zurich will focus on China, Indonesia, Japan, Malaysia, Australia, New Zealand and Taiwan, the sources said.

by Michele Limina

See Full Story at cnbc.com

Motor insurance fraud lead mastermind to jail

15 March 2016 By Digital Curator Leave a Comment

Image via Flickr user Michael Coghlan

A man who was one of the brains behind a motor insurance fraud syndicate that submitted false claims of about $380,000 in relation to nine staged accidents was jailed yesterday for three years and four months.

Su Chia Ern, 45, who owned the now-defunct car workshop Concept Services Enterprise, pleaded guilty to six charges of cheating.

The two other masterminds were Teo Kok Hwee, a managing director of a recruitment services firm, and Pan Weida Pepin, a car dealer.

Su, Teo and Pan would recruit car owners and drivers to make false reports stating they had been in traffic accidents, when they had not.

The trio would stage the accidents, but got others to submit property damage and personal injury insurance claims in their names.

To support the claims, Su would take photos of the damaged vehicles. He would sometimes even remove parts of a vehicle to make it look like it had been involved in a genuine accident.

In 2009, Su got Godfrey Liew Kok Hon, 41, the husband of his girlfriend’s sister, to submit a false claim when he found out Liew was having financial difficulties.

The prosecution asked for 31/2 years’ jail for Su, noting that such cases involve multiple layers of deception, and cause premiums for all motor insurance policyholders to rise. In 2013, the General Insurance Association of Singapore said it conservatively estimated one-fifth of all claims to be inflated or fraudulent, and such claims cost about $140 million a year.

Su is out on $200,000 bail, pending an appeal against the sentence. He could have been jailed for 10 years and fined on each cheating charge.

In all, 15 people in the syndicate, including Su, have been convicted.

by Amir Hussain

See Full Story at straitstimes.com

Millions to Get Affected by New Hike In Insurance Costs

23 February 2016 By Digital Curator Leave a Comment

Image via Flickr user Fred Benenson

The tax paid every time a policy is taken out increases from today – making premiums for cars, homes and pets more expensive.

Families could end up paying £100 more for insurance policies per year, experts have warned – as a tax increase on premiums comes into force from today.

Young motorists are likely to be most affected, and AA Insurance analysis suggests the average quote for 17 to 22-year-old drivers will soar from £1,278 to an “eye-watering” £1,319.

It is feared the tax hike could tempt some people to drive without the correct insurance – even though routine police checks would quickly uncover a fraud attempt.

Not all types of insurance are affected by the new tax rates, however.

For example, life insurance and mortgage insurance are completely exempt from IPT.

Meanwhile, travel insurance is already subject to a higher tax rate of 20%, and this will remain unchanged.

See Full Story at news.sky.com

Insurance Agency Singapore | Commercial Insurance and Personal Insurance