Third-party Independent Panel for Appeals on Discriminatory Practices in Insurance Provision for Disabled and Neurodivergent Persons
Prime Minister's OfficeSpeakers
Summary
This question concerns Mr Chong Kee Hiong’s inquiry on whether the Government would establish an independent panel of experts to review appeals against discriminatory insurance practices involving disabled and neurodivergent persons. Deputy Prime Minister Lawrence Wong replied that while the Monetary Authority of Singapore (MAS) expects fair underwriting based on objective data, the Government will not compel insurers to use panels that override their commercial risk decisions. He noted that revised guidelines on fair dealing will be issued soon to formalise these expectations and ensure insurers remain accountable for their assessments. Applicants may currently resolve disputes through insurer feedback channels or MAS investigations, though no cases of unfair underwriting have been found to date. Finally, the Life Insurance Association Singapore is working with disability organisations to improve communication and the overall insurance application experience for these communities.
Transcript
7 Mr Chong Kee Hiong asked the Prime Minister with regard to the provision of insurance products and services to the disabled and neurodivergent persons, whether the Government will consider setting up a panel of third-party independent evaluators comprising persons with these disabilities, disability experts and organisation representatives, to which appeals can be made in instances of complaints about discriminatory insurance practices.
Mr Lawrence Wong (for the Prime Minister): The Monetary Authority of Singapore (MAS) expects insurers to fairly assess every application for insurance coverage based on reliable information and data relevant to the risks being insured. This principle of applying fair and responsible underwriting practices for all customers will be formalised in the proposed revised MAS Guidelines on "Fair Dealing – Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers", which will be issued in the coming weeks.
In assessing applications, insurers must apply their respective underwriting expertise and risk appetite, based on an objective assessment of available data. If insurers wish to appoint a third-party panel of experts to advise them, they may do so. We will not compel insurers to appoint a panel that can override their decisions. Insurers should be accountable for their own decisions and should not be compelled to take on risks exceeding their expertise and appetite.
In March 2024, the Life Insurance Association Singapore (LIA) issued the LIA Guide to Medical Underwriting for Life Insurance to help consumers better understand how an insurer evaluates an insurance application based on the disclosures made and medical evidence provided. In particular, insurers will consider the severity of any existing medical conditions, typically using a combination of in-house and external expertise.
LIA members are committed to ensuring fair underwriting and clear communication. LIA has engaged charities like the Autism Resource Centre (Singapore) to better understand concerns of the autism community and explore initiatives to enhance the overall insurance application experience for them. Nonetheless, individuals who have concerns over their insurer's underwriting decision can make an appeal through the insurer's feedback channel. MAS expects insurers to have a robust process to handle customer complaints independently and effectively. If any customer feels unfairly treated in spite of the appeal, he or she can also write to MAS. MAS will investigate and take appropriate supervisory actions if the insurer is found to have acted unfairly.
To date, for the cases that have been brought to MAS' attention, MAS has not found unfair underwriting practices. Nonetheless, in some instances, the insurers could have better explained underwriting outcomes to applicants. LIA has emphasised the need to do so to their member insurers. MAS will continue to hold insurers accountable for fair and responsible underwriting practices.