Guidelines for Insurers to Adopt Fair and Responsible Practices towards Persons with Disabilities and Those with Mental Health Conditions
Prime Minister's OfficeSpeakers
Summary
This question concerns the guidelines for insurers to adopt fair practices towards persons with disabilities and those with mental health conditions and the status of Singapore's reservation on Article 25(e) of the UN Convention. Ms He Ting Ru inquired about the guidelines' specifics regarding insurance denials and the timeline for withdrawing the reservation on Article 25(e) of the UN Convention on the Rights of Persons with Disabilities. Deputy Prime Minister Lawrence Wong responded that insurers must conduct objective risk assessments instead of indiscriminately rejecting applications based solely on a disability or mental health condition. He clarified that while insurers can still adjust premiums or conditions based on medical data, the government aims to finalize the guidelines by mid-2024. Following this, the Government will proceed with withdrawing the reservation on Article 25(e) to support non-discriminatory treatment for persons with disabilities.
Transcript
30 Ms He Ting Ru asked the Prime Minister (a) what are the proposed guidelines for insurers to adopt fair and responsible practices towards persons with disabilities (PWDs) and those with mental health conditions; (b) whether the proposed guidelines will prohibit the denial of health insurance to individuals on the basis of their disabilities or mental health conditions; and (c) when will Singapore withdraw the reservation placed on Article 25(e) of the UN Convention on the Rights of PWDs which prohibits discrimination against PWDs in the provision of health insurance.
Mr Lawrence Wong (for the Prime Minister): Singapore supports the principle of non-discriminatory treatment towards persons with disabilities. Accordingly, it is the Government's intention to withdraw the reservation placed on Article 25(e) of the UN Convention on the Rights of Persons with Disabilities.
In December 2022, the Monetary Authority of Singapore (MAS) issued a consultation paper on guidelines for financial institutions on fair practices towards customers, including those with disabilities and mental health conditions. Under the proposed guidelines, MAS made it clear that insurers should not indiscriminately reject an application solely based on declared personal information, such as a disability or medical condition, including a mental health condition. Instead, insurers are expected to carry out an objective assessment of every application based on reliable information or data relevant to the risks being insured.
However, insurers are not prohibited from declining applications, setting higher premiums or applying appropriate conditions in view of the risks presented by an applicant. For health insurance, insurers assess risks based on a customer's medical history, health condition and health risks arising from any known conditions. Having a robust assessment framework is fundamental to the long-term sustainability of an insurer's business.
MAS is carefully considering the feedback received on the proposed guidelines. We intend to finalise and issue the guidelines by mid-2024, and thereafter, will work towards withdrawing the reservation placed on Article 25(e) of the UN Convention on the Rights of Persons with Disabilities.