Measures to Ensure Prompt Payouts by Licensed Insurers Regarding Deceased Policyholders
Ministry of FinanceSpeakers
Summary
This question concerns whether the Monetary Authority of Singapore will implement measures to help licensed insurers promptly identify deceased policyholders and initiate timely claim payouts. Mr Don Wee inquired about aligning these practices with insurers' fair dealing obligations, to which Deputy Prime Minister Gan Kim Yong, responding for the Prime Minister, replied. The Minister explained that insurers proactively identify potential claims by scanning obituaries and engaging intermediaries to contact next-of-kin. He highlighted that guidance is available on insurer websites, complemented by resources from MoneySense and the Life Insurance Association Singapore regarding estate planning. Finally, the Minister emphasized that policyholders should update beneficiary contact details and inform family members of insurance arrangements to facilitate a smoother claims process.
Transcript
4 Mr Don Wee asked the Prime Minister and Minister for Finance whether MAS will consider measures that will enable licensed insurers to more promptly identify deceased policyholders and initiate claim payouts in a timely manner, thereby ensuring alignment with insurers' fair dealing obligations.
Mr Gan Kim Yong (for the Prime Minister): To help bereaved families make a claim when a loved one passes away, insurers provide guidance on their websites on the claims process and required documents for submission. Additionally, MoneySense and the Life Insurance Association Singapore websites offer resources on estate planning and post-death administrative matters.
In cases where claimants may not come forward in a timely manner or at all, insurers do take proactive steps to identify potential death claims. These include scanning obituaries in mainstream media and engaging intermediaries who service the relevant policies, for information of insured persons who may have recently passed on. Efforts are then made to contact the next-of-kin, for them to initiate the claim submission process.
It is a good practice to keep one's family and loved ones informed of any insurance arrangements made. Updating insurers on changes to the contact information of one's beneficiaries/next-of-kin is also important. Relevant forms are available on the insurer's website, or upon request via the financial representative and at the insurer's customer service centre. These steps can help smoothen the claims process during the challenging period upon the passing of a loved one.