26 July 2018
On 29 June 2018, the Monetary Authority of Singapore (“MAS”) issued revised versions of the relevant insurance-related Notices and Guidelines which provide for the following additional disclosure requirements:
- the formats of the cover page and the bundled life policy document;
- the disclosure of net investment returns and total expense ratios for participating policies; and
- the disclosure of illustrated yield at maturity in relation to an endowment insurance product and illustrated yield upon surrender in relation to a whole life insurance product.
In addition, the “benefit illustration” has been renamed as “policy illustration” to better reflect the objective of the document.
The amendments to the relevant Notices and Guideline took effect on 2 July 2018.
The relevant Notices and Guidelines are:
- ID 01/17 Guidelines on the Online Distribution of Life Policies with No Advice
- MAS 302 Product Development and Pricing
- MAS 318 Market Conduct Standards for Direct Life Insurer as a Product Provider
- MAS 320 Management of Participating Life Insurance Business
- MAS 322 Information to be Submitted Relating to the Web Aggregator
- FAA-N16 Notice on Recommendations on Investment Products
- FAA-G15 Guidelines on the Online Distribution of Life Policies With No Advice
The above changes follow from a public consultation on the Recommendations of the Financial Advisory Industry Review (“FAIR”) on 5 March 2013 and its response to feedback on 5 March 2013 and 30 September 2013. Following the issuance of the response, MAS worked closely with the industry to finalise the amendments.