Impact on Affordability of Insurance Premiums from NTUC Income's Conversion from Insurance Co-operative to Corporate Entity

51 Mr Liang Eng Hwa asked the Prime Minister (a) whether the recent announcement by NTUC Income to convert itself from an insurance co-operative to a corporate entity will have any impact on the affordability of insurance premiums going forward; and (b) whether workers will continue to have access to affordable insurance.

Mr Tharman Shanmugaratnam (for the Prime Minister): When NTUC Income Insurance Co-operative Limited (NTUC Income) was established in 1970, there were very few direct insurers. It filled a major gap: to provide affordable insurance to workers in Singapore.

The Singapore insurance market has since grown significantly, with more than 40 direct insurers today offering a wide range of retail insurance products. The insurance market today is also highly competitive. No single insurer dominates in terms of providing the most affordable or innovative insurance products. NTUC Income becoming a corporate entity should, therefore, not have an impact on the affordability of insurance products. NTUC Income has, on its own part, also said that it will remain committed to improving the financial well-being of Singaporeans via affordable and quality insurance solutions.

The best way to have affordable prices and wide choice of products is to ensure a vibrant and competitive industry. MAS will continue to promote this.