In an advertisement that may be viewed on the LIA’s website, the association said it was “supportive of the objectives of the Financial Advisory Industry Review (FAIR)", noting that after 50 years in existance, the organisation remained “resolute in our endeavour to put customers in focus and ensure they have access to innovative life insurance solutions that can best serve their needs”.
It defined the pending review’s objectives as being designed to “enhance the professional standing and competency of financial advisers; and to create a more competitive and efficient distribution system for financial products”.
As reported, news of the pending FAIR review was delivered on 26 March in an address by Ravi Menon, managing director of the Monetary Authority of Singapore.
In his address, which may be viewed on the MAS website, Menon said the goals of the review would include raising the competence of advisers and the quality of their firms; making financial advice a “dedicated service”; lowering the distribution costs of insurance products, and promoting a “culture of fair dealing”.
In its advert, LIA looked at the industry’s history over the past half century as well as its current state, which it noted involves, as of the end of 2011, 12.3m in-force individual insurance policies in the hands of Singapore’s 5.2 million population, of whom 3.5 million are resident, with a total sum insured of $520bn. This includes 3m whole life policies, 2.5m endowment policies, 2.3m term insurance policies and 3.8m health insurance policies.