Blog - Insurance Agency Singapore | Commercial Insurance and Personal Insurance

The rise and rise of unaffordable motor insurance

23 August 2016 By admin Leave a Comment

motor insurance

You know things are bad when people start moving back in with their parents because car insurance costs too much. For most of us, moving back in with mammy would be a line of last resort but it is increasingly a reality for many who have seen the cost of insuring their car for a year spike dramatically upwards.

On average, the cost of car insurance has risen by 38 per cent in the past year, and that’s on top of significant rises in 2015 and 2014. Some have seen three- or four-fold increases in the numbers at the bottom of their renewal slip. Ireland Underground, a pressure group whose aim is to lobby for reductions in the cost of insurance, has reported that at least one of its members has a position of work under threat because she cannot afford the sudden increase in premium.

According to the insurance industry, there are solid and sadly sensible reasons for all of this. To begin with, Irish drivers are being wayward and racking up more and larger claims. On top of this, the market for insurance is somewhat perilous: it has been dealing with the collapse of Setanta Insurance and must now deal with the collapse of Enterprise Insurance. And as if these factors weren’t enough, the legal system has been driving up the cost of insurance thanks to inflated fees and the new-found freedom of judges at the District Court level to hand out larger awards.

By Neil Briscoe

See full story at www.irishtimes.com

Why are insurance companies lagging in climate risk?

18 August 2016 By admin Leave a Comment

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You would think that insurance companies would be experts in minimizing risk and reducing exposure to catastrophic natural disasters.

But a recent report suggests that the vast majority of insurance companies are not factoring in climate risk when it comes to their investment decisions.

Just one out of every eight insurance companies is taking tangible action on protecting their portfolios on climate risk, according to the Asset Owners Disclosure Project’s (AODP) annual Global Climate 500 Index, which analyzed 116 insurers with $15.3 trillion of investments.

The report also found that only 1 percent of those insurance companies assess the emerging risk of stranded assets, or the risk that carbon assets will become “stranded” in part due to future regulations on fossil fuels and growing demand for renewable energy.

Most of all, the report finds that insurance companies pale in comparison to how pension funds are evaluating climate risks such as climate change and drought.

Low-carbon investments represent on average only 0.8 percent of insurance portfolios, but 3.5 percent of pension portfolios as $30 billion of insurance assets are invested in low-carbon investments compared to $93 billion of pension assets.

Evaluating risk

Insurance companies generate revenue in two ways: collecting insurance premiums from customers and also investing those premiums in different investments.

The AODP says that while insurance companies are analyzing climate risk when offering insurance to their customers, the insurers are largely not assessing climate risk when it comes to their own investment portfolio.

“Pension funds in recent years have been driven by a small percentage of active members to review their management of climate risk,” said AODP CEO Julian Poulter. “This accountability does not exist for insurance companies who don’t have members, who are mainly listed and whose shareholders have been slow to hold them to account.”

The AODP ranks insurance companies on how well they are assessing these risks on with their own ranking system from AAA to D, and companies that have shown no signs of any action are referred to as laggards and are given the ranking of X.

Out of the 116 insurers analyzed by the AODP, 48 companies showed no evidence of doing anything to protect their portfolios from climate risk. This totaled $4.2 trillion assets under management.

By Keith Larsen

See full story at www.greenbiz.com

4 Things to Know About Disability Insurance

16 August 2016 By admin Leave a Comment

Disability Insurance

Insurance. There are probably no other financial terms more likely to induce feelings of sleepiness. Or dread. After all, who likes to spend money on something you hope you’ll never have to use? And don’t you have enough types of insurance already?

Well, without wanting to sound like an insurance salesperson, how would you pay your bills if an accident or illness left you unable to work? That’s the risk disability insurance is designed to cover. It would pay a portion of your salary in that situation.

The good news is you may already have adequate protection. And even if you don’t, the cost of coverage may not be as high as you feared. Here’s what you need to know about disability insurance.

1. You Might Need It

When you’re young and healthy, it’s difficult to imagine life might ever be different.

However, the insurance industry is quick to point out that your chances of becoming disabled are higher than your chances of dying prematurely. And the Social Security Administration has a scary-sounding statistic to back that up: Some 25% of 20-year-olds will become disabled before reaching retirement age.

However, not all disabilities are the same. Some are severe and permanent. About 10% of all Americans are now severely disabled, according to the U.S. Census Bureau. Many other disabilities are neither severe nor long-lasting. To put the situation in context, the Council of Disability Awareness says the average length of a long-term disability claim is three years.

2. You Might Already Have Some

Even without buying a disability insurance policy, you might already be at least partly covered.
Workers’ Compensation

This program is administered on a state-by-state basis, and some states do not require companies with fewer than four employees to maintain the coverage. However, if you work for a company that does carry workers’ “comp” and you’re injured on the job or develop a work-related disabling illness, this insurance should cover about two-thirds of your pre-disability income.

Still, the National Safety Council points out that only 27% of long-term disabilities are work-related. Most don’t even come from accidents; they come from cancer, heart disease, and other illnesses.

3. You Might Need More

After reviewing all of the above, if you decide to buy additional coverage, check whether it’s offered through your employer. That will typically be the least expensive option.

By Matt Bell

See full story at time.com

How Much Insurance is Needed in Singapore?

11 August 2016 By admin Leave a Comment

Insurance

Singaporeans are said to be kiasu (fearful of losing out) in almost everything. Looking around at the enrichment classes that a child attends these days for their development and other peripheral expenses that becomes priority makes one wonder if Singaporeans are also spending just as much on protection.

How much protection is enough?

Based on a gap study conducted by Tower Watson for LIA in 2012, a person should have an adequate insurance coverage of 10 times his or her annual income especially if one has dependants¹. Alternatively, a working adult requires an average protection needs of $626,000¹ ! This may just well be a guideline to the amount of insurance coverage required.

So what should I do?

Once you have a simple method to identify your insurance coverage, you may then start to work on your shortfall. With the shortfall, you may fill the gap by simply adding a term plan. Due to the fact that there is no cash value at the end of the coverage also explains why it is one of the cheapest life protection product out there.

Why do I need insurance?

Insurance is a very good tool for managing risks for you and your loved ones.

If you are earning $3,000 a month and need to cover yourself adequately for $500,000, based on a 20% savings each month, it will take you $500,000 / ($3,000*20%) = 833.33 months or 68.4 years just to accumulate that amount. This is where buying insurance to transfer the potential cost, in exchange for a fee known as the premium, for insurance company to take on the risk that you may face.

See full story at secure.fundsupermart.com

Singapore Insurance Market – Boom or Bubble about to Burst?

9 August 2016 By admin Leave a Comment

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The LIA of Singapore recently released its industry performance for 2015 with 14 per cent increase in new business and almost $3 billion in new business premium. With a bumper crop of insurers vying for a slice of this pie, what does the future hold for insurance in Singapore? Are we in a market boom or is this a bubble that is about to burst?

Rapidly changing regulatory landscape
The introduction of the Financial Advisory Industry Review (FAIR) 3 years ago sought to raise industry standards and bring about more transparency in terms of the products and sales process. While this was on the whole, welcomed in the industry – which viewed increased regulations as a step in the right direction – it also led to an exodus in sales talent, especially in the Banking segment where sales commissions were most drastically cut.

Changing business model – direct purchase
One of the key recommendations from the Monetary Authority of Singapore (MAS) was the introduction of direct purchasing for insurance products. While the majority of insurance professionals we spoke to felt that Singapore is not ready for such a model, a number of companies have expressed interest in creating a direct purchase model for the life segment to both combat rising operating costs and bypass the problem of attracting and retaining talent.

High net worth landscape – demand for specialists
The demand for specialist talent in the high net worth segment continues, especially in the sales segment, albeit at a slower pace. While employers remain open to strong specialist profiles, the increasingly uncertain market also means tighter recruitment criteria such as:

1. Stable profiles – movements within 1 – 1.5 years are usually scrutinised and some employers have been known to request for proof of job performance / track records.
2. Strong track record – this relates both in terms of sales performance but also career progression that makes sense. For instance, opportunist candidates who make the leap for a small increment in pay will find the current market challenging.

By Cherylene Wee

See full story at www.morganmckinley.com.sg

4 Types of Insurance Everyone Needs

4 August 2016 By Digital Curator Leave a Comment

insurance everyone needs

There are however, four insurances that most financial experts recommend that all of us have: life, health, auto and long-term disability. Each one of these covers a specific aspect of your life, and each one is very important to your financial future.

Life Insurance
The greatest factor in having life insurance is providing for those you leave behind. This is extremely important if you have a family that is dependent on your salary to pay the bills. Industry experts suggest a life insurance policy should cover “ten times your yearly income.” This sum would provide enough money to cover existing expenses, funeral expenses and give your family a financial cushion. That cushion will help them re-group after your death.

When estimating the amount of life insurance coverage you need, remember to factor in not only funeral expenses, but also mortgage payments and living expenses such as loans, credit cards and taxes, but also child care, and future college costs.

LIMRA, formerly known as the Life Insurance Marketing & Research Association, says that if the primary wage earner dies in a family with dependent children that family will only be able to cover their living expenses for a few months, and four in 10 would have difficulty immediately.

Health Insurance
A recent Harvard study noted that statistically, “your family is just one serious illness away from bankruptcy.” They also concluded that, “62% of all personal bankruptcies in the U.S. in 2007 were caused by health problems and 78% of those filers had medical insurance at the start of their illness.”

Those numbers alone should urge you to obtain health insurance, or increase your current coverage. The key to finding adequate coverage is shopping around. While the best option and the least expensive is participating in your employer’s insurance program, many smaller businesses do not offer this benefit.

Long-Term Disability Coverage

This is the one insurance most us think we will never need, as none of us assumes we will become disabled. Yet, statistics from the Social Security Administration show that three in 10 workers entering the workforce will become disabled, and will be unable to work before they reach the age of retirement. Of the population, 12% are currently disabled in some form, and nearly 50% of those workers are in their working years.

By: Linda McMaken

See full story at www.investopedia.com

Advantage & Disadvantage of Insurance

2 August 2016 By Digital Curator Leave a Comment

advantage & disadvantage of insurance As a small-business owner, you must assess the risks of your particular enterprise to determine the advantages and disadvantages of commercial insurance. If you’re a sole proprietor, you might be fine simply setting up an automatic savings plan as a cushion against unforeseen expense; however, if you’re the owner of a larger business, you may need commercial insurance to protect against greater risk. The type of business you have also factors in; doctors, for example, are exposed to greater risks than realtors.

Types of Commercial Insurance

In America, all small businesses that employ workers are required by law to have some insurance coverage, such as workers’ compensation, unemployment insurance, and in some states, disability insurance. If your business uses a car or truck, your state may also require you to purchase commercial auto insurance. However, there are many additional types of insurance beyond this basic minimum. General liability insurance is a broad umbrella policy that covers a business against injuries, accidents and claims of negligence.

Expense

Although business insurance may offer you a hedge against disaster and help you sleep more soundly, it rarely comes cheap. The expense of business insurance is its main disadvantage for small-business owners, who seldom have a lot of cash to devote to “what ifs.” You should shop around to get the best possible commercial insurance rates, but be careful to check out an unfamiliar company to be sure it’s reputable. You may also choose a policy with a higher deductible to cut your monthly payments, but if you do, prudence demands that you set the deductible amount aside in case you suddenly have to come up with it. You must also weigh the coverage a cheaper policy affords. In some cases, the skimpy coverage may not justify the expense.

By: Mary Strain, Demand Media

See full story at smallbusiness.chron.com

5 reasons why insurance is important to an individual in our everyday life

28 July 2016 By Digital Curator Leave a Comment

insurance

With the term “insurance” many people understand only about LIC policies. Actually it is not their fault, as they don’t get much exposure and not able to explore why insurance is important. This is good that Govt. is also encouraging the awareness of insurance by various schemes.

Buy some security in advance and be smart

The major benefit of insurance policy is it will provide you risk coverage. E.g. two wheeler insurancewill cost you some Rs 1000/- every year. With that you can make sure that in case of any damage to your bike you can get enough recovery benefit. Similar to that life insurance, car insurance, health insurance and now a day’s even mobile phone insurance will help you to buy a security in advance. An iPhone user can understand the importance of insurance, as the phone can damage anytime. The interesting thing is you have to spend a little amount to buy that coverage. If you plan accordingly then with this small investment indirectly you can be tension free.

Be tension free and take risk as much as you want

Just imagine how much we are planning every day for our future. Child education, marriage,retirement planning, travel plan and many things. What if the earning member of the family died suddenly? These plans for rest of the family should not impact. In that case a term insurance plancan simply save your family’s life. Now those who really understand the importance of insurance would have already buy a term plan. And for others don’t wait till it is very late. Just imagine a minimum amount of 10,000 – 15,000 can buy a life cover of 1 crore. Now you can take risks, don’t have to feel the pressure of doing something out of your box. Enjoy every day life with your family, as everything is planned now.

By: Santanu

See full story at www.mydailylifetips.com

Life Insurance – Is It Really Necessary for Singapore Workers?

26 July 2016 By Digital Curator Leave a Comment

life insurance

Employees love to be taken care of – in fact, research suggests that workers’ benefits can be traced all the way back to the Golden Age of Piracy, where Caribbean pirates who fell injured in their dangerous trade would be compensated with shares of silver and gold pooled from their fellow uninjured buccaneers.

Closer to home, some companies may have their own form of booty in place – by providing some sort of financial compensation to an employee (or his/her beneficiaries) who is afflicted with critical illness or even death – the company usually offers this magnanimous health benefit straight from the company’s bowl of goodwill.

The Upside….
Most employers should consider providing insurance coverage for her employees to remain competitive with their rivals for the most talented employees. In addition, employers themselves also stand to gain from the advantage of less expensive health insurance when you consider the lower rate of premiums that come with purchasing insurance for a large group.

This gesture also suggests that the company cares for her employees’ welfare. In fact, some group insurance plans may offer supplementary riders – in effect, a form of preventative care to keep employees healthy and working. Without preventative care, employers might wind up having more employees out of the office than in it – and for long periods of time.

By: Deanna Bonaparte

See full story at community.jobscentral.com.sg

3 types of insurance policies Singaporeans should consider

12 July 2016 By admin Leave a Comment

insurance policies

If your insurance agent had his way, you’d be insured for everything from the flu to missed MRT trains. On top of that you’d be paying every leftover cent into one of those investment-linked life insurance policies.

But don’t get all sceptical and swear off insurance altogether. Because there are certain types of private insurance that are highly advisable no matter what you do in life. Here are three Singaporeans might want to consider.

Hospitalisation policy (everyone)

Despite the changes to the MediShield Life system, it’s still financially prudent for Singaporeans who can afford to to get a private medical insurance policy that gives you some coverage for your medical costs so long as you’re seriously ill enough to be warded in a hospital.

That means you can’t make claims for those MCs you take to skip work, unless you are such a good actor you actually make it to the hospital. But it does mean you are protected if you get sick enough to ring up financially-damaging medical costs.

MediShield life provides limited coverage, which means that you’re pretty much limited to B2 or C class wards and can only use public hospitals. No matter what you think about the standard of medical care at private hospitals vis a vis public, the fact of the matter is that the waits are longer at public hospitals.

Most people will be looking at getting an Integrated Shield Plan, which basically tops up your existing MediShield Life Plan by giving you a wider choices of hospitals and wards. You’ll be able to stay in A or B1 class wards, as well as private hospitals and doctors.

Another advantage is that many medical insurance plans will cover at least part of your costs should you get hospitalised overseas. So if you get into an accident on your road trip to KL and forgot to buy travel insurance, you don’t need to be evacuated back to Singapore.

By Joanne Poh

See full story at business.asiaone.com

Insurance Agency Singapore | Commercial Insurance and Personal Insurance