SINGAPORE : Singaporeans planning to buy insurance products can look forward to paying lower costs.
This comes after the Financial Advisory Industry Review Panel made a slew of recommendations to raise the quality and efficiency of the financial advisory industry.
They include proposals aimed at lowering the distribution costs of insurance products.
The panel reviewing the financial advisory industry has recommended measures that include raising the minimum education qualification of new financial advisers.
They also propose that a website be set up to make it easier for consumers to shop for financial products.
Lee Chuan Teck, assistant managing director for Capital Markets at the Monetary Authority of Singapore (MAS), said: "The panel recommends that MAS work with the industry to develop a web aggregator that allows consumers to easily compare pricing, benefits and other features of similar products offered by different insurers."
A survey by MAS found that 80 per cent of Singaporeans are not prepared to pay an upfront fee for financial advice.
This led the panel to focus on how to lower distribution costs for insurance-based products.
It has proposed the introduction of a direct channel for consumers to buy basic insurance products directly from the insurers.
Tan Hak Leh, president of the Life Insurance Association, Singapore, said: "Any measures that lead to greater transparency would increase competitiveness and each player would then need to find ways to stay competitive in the market."
However, the financial adviser's role will not be displaced.
A financial adviser's services would still be required to sell some products.
Augustine Lee, president of the Association of Financial Advisers (Singapore), said: "Insurance (products) normally are sold and not bought, so you still need to have independent financial advisers to help you in terms of decision making and choosing the right product."
The Consumers Association of Singapore has welcomed the latest recommendations.
It said the main beneficiaries would ultimately be the consumers.
Seah Seng Choon, executive director of the Consumers Association of Singapore, said: "The issue about under insurance for Singaporeans may be addressed, now that the distribution costs can be lowered through competition."
MAS said it will consult the public on these recommendations and then decide on their implementation.
- CNA/ms
Panel makes recommendations to raise quality of financial advisory industry
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Panel makes recommendations to raise quality of financial advisory industry
