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Importance of Having a Life Insurance

2 June 2016 By Digital Curator Leave a Comment

life insurance

Having insurance can be a little confusing since it actually has a lot of different types of it. There’s the property insurance, educational insurance, business insurance, life insurance, etc. With all these things, people may experience having difficulty of deciding what they want or need. Well I say, you need insurance to everything you have. As people get older, more and more responsibilities can come across.

Ideally, when a person graduated from college, they will pursue with their dream job or just grabbing any opportunity for them to gain an income. After which, you need to look out for your health so it’s time to get yourself a life insurance. Having insurance will not be hard for you since you are now earning your own money. Then in between of you minding your own business and having a job, you will eventually find the person you want to marry, have kids, build a house, and buy your own car. You can even have a pet dog or cat if you wanted to. The important thing here is that you need to get insurance in every little thing that you manage to own because you work hard for that.

So what really is Insurance? Insurance actually is an arrangement by a private company or government agency that provides you a guarantee of having compensation after a particular incident; it may be a loss, damage, illness, or even death, in return for a payment of a premium which you have given to the company or agency when you started a contract with them. Basically, insurance gives you the security that despite unfortunate incident, you can get something based from your contribution to them, which will be beneficial to you and your family.

Still not convinced? Here are 5 reasons why you need to have a life insurance:

1. To protect your family and loved ones

If your family members or any loved ones depend on you for financial support, having a life insurance really is a must, because it allows them to receive an amount depending on your contribution and replacing your income once you die. Having insurance is important especially for parents of young children or adults who would find it difficult to
sustain their cost of living if they will eventually no longer have access to their partner who provides for the family.

2. To leave inheritance

Even if you don’t have several properties or assets to pass on to your heir, you can make an inheritance by buying life insurance policies naming them as your beneficiaries. This is a great way to give your children a solid financial future and provide monetary need that arises as you give your contribution.

3. Pay off debts and other expenses

Ideally, when you cannot provide cash on the counter pay for your car or house, it would be easier for you to pay for it monthly or quarterly. It would be important for your family to have the insurance to cover any outstanding debts, like your car loan, credit cards and most importantly, your mortgage. Other expenses include burial or funeral payments that can easily run up to thousands of dollars. You don’t want to leave it all behind to your grieving family, children, spouse, and friends with the entire extra financial burden.

4. More financial security

Like any other parents, you would really want to assure your children that they can be taken care of, physically or financially, once you are gone. It is important to ensure your children that they can go to a good quality college education, or even to provide financial support when they get married or tried to start a business even if you’re not
walking in this world anymore. Because of this, additional coverage is essential while your kids are still at home.

5. Bring peace of mind

We live in this world unaware when we’ll pass away. It may not be today, but it can be tomorrow, next week, next year, or even 20 years from now; there’s one thing we are really sure about, it will eventually happen. It may be true that no amount can replace a life of a person, but let’s be practical. Having insurance gives you a peace of mind that no matter what happens; you can actually leave your loved ones something that can
help them move on with their lives.

Those are the 5 reasons why you need to get insurance. So what are you waiting for? Buy your Life Insurance now, before it’s too late.

Being ‘too educated’ about insurance could lead to ‘overconsumption’: Experts

31 May 2016 By Digital Curator Leave a Comment

According to health experts, such cases do happen in the private healthcare sector. “Insurance sometimes creates the so-called moral hazard of overconsumption,” said healthcare economist, Lee Kuan Yew School of Public Policy’s Associate Professor Phua Kai Hong.

“That is a worldwide phenomenon and I don’t think Singapore is any different. So the moment you bring in private insurance to complement or supplement, you have to be very clear about what the rules are.”

Dr Sabnis added: “There will be a few guys who will definitely bend the rules, you can’t prevent that. Private hospitals, if I may say, also look at what value the person will bring per day.”

Insurers have noticed the trend and they say overconsumption of health insurance could make premiums rise more quickly than they already have due to medical inflation.

Said Mr Seah: “Maybe a ‘commonsensical’ approach to this would be: ‘If I have to pay out of my pocket, instead of through insurance, would I still need that treatment, and secondly, would I still be looking for that specialist treatment?'”

The key in this entire equation, the LIA said, is “sustainability”, which is why it wants to collaborate with the Government and healthcare providers, such as doctors and healthcare institutions, on how best to achieve this. It will also have to convince consumers who are, after all, paying customers.

“We have been paying insurance premiums,” said “Andrew”. “All these years when nothing happens, we don’t claim. And when the time comes, we want to be compensated properly. We feel that since we’ve been paying the premiums, then make use of it.”

If overconsumption becomes a bigger problem, there are concerns that insurers may lobby for Medisave limits to be raised so people can cope with rising premiums. Healthcare economists added that would eat into a fund meant for pressing medical expenses and there have to be tighter regulations to clamp down on excessive claims.

By John Leong

See full story at www.channelnewsasia.com

Singapore Lists 50 Largest Insurance Companies in 2015

3 May 2016 By Digital Curator Leave a Comment

Image via Flickr user reynermedia

Pricing remains ‘acutely weak’ in Singapore’s insurance market.

The fundamental growth story for Singapore’s insurance sector continues to be intact, as the savings rate rises and dependency ratio remains low. Its status as a regional centre for economic activity also continues to bolster demand for insurance across segments. “Singapore continued to build its position as a regional hub for property and casualty insurance and reinsurance,” says Peter Allen, global head of Grant Thornton’s insurance practice.

As firms aggressively try to deploy excess capital, undercutting is a natural consequence as customers often cannot be acquired fast enough to meet the supply being brought to market.

Derry Finkeldey, director of research at technology research firm, Gartner, notes that “distribution, and leveraging digital channels and capabilities to drive new business, but also to create stickiness with existing customers and increase persistency and renewals, continues to be a top of mind concern for Singaporean insurers”.

Innovative Ways

Given that this is quite a mature market in Singapore, firms are continuing to look for new ways to approach marketing campaigns as well as increase spending in innovative technology solutions according to Finkeldey.

“Insurers are slowly embracing digital channels for improving service quality. We are expecting a lot of activity around digital in 2016” says Ernst & Young advisory partner Sumit Narayanan. He notes that we are seeing an increase in insurers looking to find ways to communicate with their customers beyond the traditional points of contact, which are transactions such as premium payments and claims settlements.

by Krisana Gallezo-Estaura

See Full Story at sbr.com

Singapore firms expected to seek cyber insurance according to AIG

28 April 2016 By Digital Curator Leave a Comment

Image via Flickr user GotCredIt

Singapore’s cyber insurance market is expected to expand 50 percent this year, with finance and healthcare among the top sectors, according to AIG Asia-Pacific Insurance.

Singapore’s cyber insurance industry is expected to expand by 50 percent this year, with healthcare and finance among the top growing sectors.

Demand would be fuelled by businesses looking to mitigate potential damage from cybersecurity breaches on reputation and finances, said AIG Asia-Pacific Insurance, which based its findings on research conducted at the company’s corporate governance events in late-2014. Respondents included CFOs, risk managers, and general counsel from public-listed companies, said the financial services provider.

It added that Singapore’s goal to become a smart nationwould further increase interconnectivity and automation across the nation, hence, drive threats of cyberattacks and corporate sabotage.

AIG Singapore’s head of financial lines, Lai Yen Yen, said: “While cyberattacks grow in size, volume, and sophistication, defensive methods and technologies have not seen a corresponding evolution, potentially costing businesses millions in the event of a cyber breach.”

Market demand was forecast to come from the finance and technology sectors as well as healthcare, with security risks coming from the lack of data encryption, increased malware, and outsourcing to third-party vendors.

Research further revealed that while two-thirds of public-listed companies in Asia said cyber insurance was increasingly important, just 9 percent had such coverage, according to AIG.

by Eileen Yu

See Full Story at zdnet.com

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

How to avoid travel accidents

22 April 2016 By Alex Tan Leave a Comment

Image via Flickr user Jens Schott Knudsen

Travellers might spend a lot on immunisations but the truth is that the biggest holiday health risks are not vaccine-preventable. The vast majority of fatalities are caused either by illnesses that would have killed anyway and trauma – accidents, falls, violence. Below is a list of travel’s most deadly, and how you can decrease the risk.

1. Roads

Road traffic accidents such as car collisions and vehicles hitting pedestrians and cyclists are the biggest cause of death of otherwise healthy travellers. The risk is especially high in resource-poor destinations where 90% of fatalities on the road happen in low- or middle-income countries. Vehicles in such places may not have seat belts, and lights and brakes may not work.

Get yourself familiarise with the traffic laws there and look out for vehicles before crossing the road. Always wear your safely belt if there is one. Avoid travelling at night when it is dark.

2. Pools

Most people will assume they need to be more cautious when wild swimming however it is known that pools are more dangerous as the drowning risk is more than 12 times higher in a swimming pool than in open water; children under seven are most vulnerable. Rules are strict in the UK but, even at popular overseas holiday destinations, there may not be lifeguards.

It is important to know your limits or get in the depth of your ability range, look out for warning signs. Stay sober, to prevent yourself getting plunge into the water and suffer hypothermia quicker.

3. Accommodation

There are a surprising number of injuries, and even deaths, connected with travellers’ accommodation. Hotels lacking smoke alarms or sprinkler systems, and poorly- vented heating devices emitting carbon monoxide are risks. Wild camping in remote spots can be dangerous if you don’t know the local terrain.

Always check for the fire escape route, and think about what kind of hotel you have choose. Keep a torch with you especially when you are in a destination where there are frequent power cut. And always remember, never smoke in bed. When it comes to camping, try not to light a stove in the entrance while you are inside.

4. Mountains

Mountains are dangerous places despite the changeable weather, thin air and sheer drops. Most people died from falling off cliff paths and one common cause of which is being pushed over by passing yaks, mules or even goats. Some even died from altitude sickness, something travellers climbing over 3,000m need to be very aware of.

It is crucial that trek-leaders be gently reminded to follow sensible safety precautions. Always check the weather there, and prepare all the equipment needed for safely precautions. Do not overlook this.

5. Diving

Scuba-diving has a reputation for being dangerous, but under proper conditions with safe equipment the risks may be low but higher at some destinations: medical examinations, or even ability to swim, are not always mandatory when hiring scuba equipment.

6. Extreme adventures

Rafting, bungee jumping, jetboating etc. The list of possible extreme sports you can try overseas is long and terrifying. Few travellers die but there are fatalities even in experienced ventures; it can be instructive to Google the possible injuries and likelihood of death before signing up. The list for bungee-jumping, for example, is especially impressive.

By Dr Jane Wilson Howarth

See full story on Wanderlust

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

Should you buy Travel Insurance?

21 April 2016 By Alex Tan Leave a Comment

Image via Flickr user Heneghan

I have never bought travel insurance in my life because instinct has always told me that it’s a bad deal. I rarely pay for hotel rooms, tours or rental cars in advance. I don’t pack designer clothing in my checked luggage. I’m generally healthy, and I have medical insurance that covers me abroad.

But instinct is a poor way to make decisions about insurance. So with a three-week trip to Asia approaching, I finally decided to figure out whether I should be traveling with insurance, and, in general, when it is smart to have it and when is it unnecessary.

Travelers tend to buy insurance if they are more at risk or more likely than the average policyholder to make a claim. In economics that’s called “adverse selection” — but it’s adverse only for the insurance companies. For consumers, it’s just smart. Imagine two people looking at a $100 insurance policy for a two-week trip: one is a 65-year-old heading to India, where he plans to rent a scooter, eat street food and sleep in already-reserved five-star hotels every night. The other is a 30-year-old going to London, planning to crash at a friend’s apartment and buy discount theatre tickets every night. It’s pretty clear who should buy insurance.

Generally, travel insurance is sold in packages, combining various categories of coverage. Go through them all, determining what you need and what you don’t, either because you’re not at risk or you’re already covered. If a package doesn’t seem worth it, more customized policies offer certain options. But you may not end up saving that much.

Medical

If you have regular health insurance which doesn’t cover you while abroad, you need some when you travel. Medicare participants and citizens of countries covered by national health services generally fall into this category. Others should check on the specifics of their policies.

Emergency Evacuation

This one is simple: without coverage, if I have to be medically evacuated home from a distant land, I’m out something like $30,000. So it comes down to how likely the scenario is. Headed to a particularly isolated region? Climbing mountains or fording rivers? Then having evacuation coverage as part of a package or separately is a good idea.

Travel Protection

This kind of insurance offers reimbursement (sometimes partial) for prepaid reservations if your trip is cancelled, interrupted or delayed. I rarely spend much on a trip before I leave beyond the plane ticket (always coach) and maybe the first night in a hotel (always cheap). But for others, with expensive seats and long prepaid reservations, it might make sense.

Also worth noting: some credit cards will provide similar coverage.

Baggage Protection

It’s worth it to determine the value of what’s inside your baggage and do the math.

Of course, whether you get reimbursed is partly up to you. A World Nomads customer service representative gave this example: if you leave your cell phone in your bathing suit and go into the water, it’s not covered.

Accidental Death and Dismemberment

I’ve never understood this one. If you need life insurance, wouldn’t you want it for the whole year, not just when you’re traveling? And if you lose a limb, will a few grand — what World Nomads offers — really help? (Note that life insurance companies will ask about your travel habits; so be sure you’re honest when you apply — and if you already have coverage, be sure it covers the countries you’re visiting.)

So Is It Worth It?

Though my initial instinct to avoid package insurance had been (coincidentally) right, the process was valuable anyway: I now know a lot more about my medical coverage and credit card perks. Everyone should make similar calculations.

By Seth Kugel

See full story on New York Times Blog

The Importance of Travel Insurance Abroad

20 April 2016 By Alex Tan Leave a Comment

Image via Flickr user Astrid Westvang

Don’t Leave Home without It

Several years ago, I went to visit some friends in the U.S. in the Cascade Mountains of Washington. On arrival, I realized that I had forgotten to buy travel insurance. Feeling young, fit, and reckless, I decided that it would not matter as the trip was only to be two weeks long. What could possibly go wrong in such a short space of time? As if to tempt fate, I decided to join my friends snowboarding for a day. I was slightly more nervous given the knowledge that I had no insurance, but my friends persuaded me little could go wrong since I was a beginner and wouldn’t be moving fast enough to have an accident. Unfortunately, due to some bad amateur coaching, I ended up being taken off of the slopes on a stretcher and in a daze, with no memory of the day, date or year for that matter. When the safety workers were about to put a neck brace on me and take me to hospital, I admitted that I had no insurance and preferred it if they left me to get better by myself. I did, luckily. But I have never travelled without insurance since then.

Who Needs Travel Insurance?

Majority of world travellers tend to be quite young, and some are reckless. Youngers always have the idea that youth is on their side, and ignore that travel insurance are not needed. The idea of paying what seems like a large sum of money, and most often will never be use can seem to be ridiculous for a young traveller. However, accident or illness could happen and usually happen in a foreign country. Regardless of age, if you do not have any form of travel insurance, your life could be in danger and in terms of the financial damage on medical costs.

Your insurance policy should offer at least US$2,000,000 in medical expenses in case the very worst happens, preferably more if possible. It should also offer 24-hour emergency service and repatriation in case you need to be flown home.

How Much Insurance Should You Take Out?

Once you have decided to buy travel insurance, your next decision is whether to try and save money by not including your cash and belongings covered under the insurance plan. By deleting this coverage, it will bring down your premium slightly. However, if you have new camera equipment etc. you may pay the extra few dollars and have these things covered too.

On the other hand, don’t pay out too much for a premium if you aren’t going to make the most of it. Travel insurance for people doing winter sports often doubles because of the associated risks, so it makes a huge dent in your wallet. However, unless you plan to be on the slopes every single day of you trip, it’s worth considering other options. There is daily travel insurance, and some covers for single trip travel as well.

What Should The Insurance Plan Cover?

Some final factors to consider before buying travel insurance include checking to see that the policy covers you for what you will be doing. Aside from winter sports, there are other sports that require a higher premium.

And an important point for many will be whether you will be covered for manual labour. Many of us take part in various forms of manual labour when working or volunteering abroad and some companies don’t cover this. If you are in any doubt, contact the insurance company and ask them before you buy your policy.

Don’t Forget to Read the SMALL PRINT!

Once you have bought your insurance, ALWAYS READ THE SMALL PRINT, no matter how tedious this job might be. If you know what to do in terms of your insurance company in case of an emergency, it could make a difference between making a valid claim or not.

Important Things to Remember That Could Make All the Difference

Now, you have your insurance policy that covers you for everything that you need, and you have arrived at your destination. As much as you should have fun on your trip, don’t assume that just because you do have travel insurance, it makes you invulnerable or able to take excessive risks.

Any accidents caused by alcohol or drug abuse, no matter how small, will completely invalidate your claim so BE VERY CAREFUL. Alcohol and drug abuse in an unknown country is usually a very bad idea anyway as you are less aware of local risks, more vulnerable to attack, and penalties can be much higher than at home.

One final thing to remember is that once you have stepped onto that flight your chances of buying travel insurance for that particular trip are greatly diminished. Most insurers will only cover you if you buy the insurance before you leave. Some will provide insurance once you have already left but these are quite difficult to find.

And finally, don’t forget to take your insurance details with you wherever you go, otherwise they are useless! And where possible, make photocopies and leave them with a friend or family back home in case your gets stolen.

By Caroline Nye

See full story on Transitionsaboard

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

Insurance Agency Singapore | Commercial Insurance and Personal Insurance