Monitored Claims against Investment-linked Policies for Every Year Since 2015

1 Mr Low Wu Yang Andre asked the Prime Minister and Minister for Finance (a) whether MAS monitors the annual number of claims brought by citizens through the relevant channels against investment-linked policies; (b) if so, for each year since 2015, what is the (i) number of such claims (ii) total quantum of consumer financial losses from resolved claims and (iii) median quantum for each claim.

Mr Gan Kim Yong (for the Prime Minister): My response to this question will also address the other oral Parliamentary Question¹ filed by Mr Andre Low for a subsequent Sitting.

The Monetary Authority of Singapore (MAS) works closely with the Financial Industry Disputes Resolution Centre (FIDReC) to monitor the trend of cases filed against financial institutions on all financial products, including those relating to investment-linked policies (ILPs). FIDReC is an independent and impartial body which assists in the resolution of disputes between consumers and financial institutions. The average annual number of ILP-related cases handled by FIDREC from 2017 to 2024 was 83, which represented 0.06% of the average annual number of ILPs sold over the same period. In 2024, ILP-related cases handled by FIDReC rose to 211 cases, representing 0.1% of total ILPs sold that year. While cases were higher in 2024, the numbers have moderated this year. For the first half of 2025, there were 60 ILP-related cases, compared with 122 for the same period last year. Median quantum sought by claimants was $11,300 in 2017 and $7,200 in 2024.

It is untrue that MAS has not implemented strong consumer protection measures sooner. There are in fact existing consumer protection safeguards in place. Financial institutions and their representatives must demonstrate that ILPs are suitable for clients when recommending the product. They must also disclose key product information and features, including attendant fees and charges. They must make special arrangements for vulnerable clients, such as elderly customers who are not proficient in English. They must also perform call-backs to verify a client's understanding of the product and its associated risks before concluding the sale. From 29 December 2025, there will be additional requirements, including having a trusted individual² such as a family member or caregiver to be present with the vulnerable client during the sales and advisory process. Where misconduct is established, MAS takes firm enforcement action against errant financial institutions and their representatives. These enforcement actions are published to send a deterrent signal against misconduct across the industry.

While the incidence of complaints is generally less than 0.1% of ILP products sold, MAS has proposed new measures to further strengthen consumer protection. MAS conducted a public consultation in July on two key measures relating to ILPs.

First, MAS proposed that financial institutions provide a standardised product highlights sheet to outline key risks, features, fees and exit procedures of ILPs. This includes important questions for consumers to ask their financial advisers.

Second, MAS proposed for ILPs to be classified as complex products. This classification acknowledges that ILPs combine insurance and investment elements. It also acknowledges that the policy’s performance is subject to the performance of the underlying fund linked to the policy, as well as ongoing insurance premium charges, which increase with age. These factors are generally beyond investors' control and retail investors may not easily understand the risk-return characteristics of ILPs. Under MAS' proposals, a complex product will have a red-coloured heading band on the product highlights sheet to alert investors to seek advice before making a purchase. In addition, sellers of these products must provide vulnerable customers with financial advice when these investors purchase any complex product.

MAS aims to finalise the proposals in early 2026. The proposals, along with existing safeguards, ensure appropriate safeguards for customers who purchase ILPs, especially those who are vulnerable, while empowering customers to make informed choices.