Life insurance industry's Q1 sales up 9%

By Toni Waterman
POSTED: 14 May 2013 1:55 AM
Article from http://www.channelnewsasia.com/news/business/singapore/

Singapore's life insurance industry has seen a 9% jump in first-quarter sales from a year ago. Weighted sales totalled S$561.8 million, coming on the back of strong growth in regular premium products.

SINGAPORE: Eighty-two per cent of life agents with major insurers have passed an exam qualifying them to sell Investment-Linked Life Insurance Policies (ILPs), according to the Life Insurance Association, Singapore.

This comes as a June 30 deadline on new testing requirements looms.

Singapore's life insurance industry has seen a 9 per cent jump in first-quarter sales from a year ago.

Weighted sales totalled S$561.8 million, coming on the back of strong growth of 19 per cent in regular premium products, which totalled S$428.9 million. But that rise was countered by lagging sales for single premium products, which fell 15 per cent on-year to S$132.9 million.

The Life Insurance Association's president, Annette King, said the industry has sustained a level of growth despite a slowing economy.

This comes as the industry gets ready to meet new testing requirements implemented by the Monetary Authority of Singapore (MAS) last year.

Among them is a test to qualify financial advisors and insurance agents to sell ILPs.

If they do not pass, agents will be limited to the sale of non-complex life insurance products like term policies, whole life plans and endowment plans.

Dr Khoo Kah Siang, deputy president of the Life Insurance Association, said: "The exams have actually helped to increase the professionalism of the advisors, in terms of them being able to provide the advisories for the more complicated products.

"So in that sense, the exams will help increase the level of professionalism for the industry and the consumer. It will benefit the consumer in the long run."

An MAS survey conducted in February showed that 70 per cent of financial advisory representatives have passed the test - known as Module 9A - but only 66 per cent working for insurers have passed.

The Life Insurance Association said eight in 10 agents with major insurers have now cleared the test, as of 2 May 2013.

Ms King said the exams won't have an impact on industry revenues.

She said: "Singaporeans still need and seek advice and 80 per cent of people say that having quality advice is instrumental in their decision around insurance.

"So more qualified professionals is a good thing and that we continue to see a growth in our industry with people predominately driven by advice, and I think we will continue to see that."

Analysts have speculated that some advisors who do not pass the exam will leave the life insurance industry.

- CNA/ms

Toni Waterman
POSTED: 14 May 2013 1:55 AM
Article from http://www.channelnewsasia.com/news/business/singapore/

Fairness of HK commission disclosure rules challenged

From Asia May 10 2013 BY: Simon Danaher
Article from http://www.international-adviser.com/news/asia/

Questions have been raised over the fairness of plans to introduce commission disclosure for advisers selling Investment Linked Assurance Schemes (ILAS) in Hong Kong, as those tied to banks or insurers will not be subject to the new rules.

As reported earlier this week, advisers selling ILAS products in Hong Kong will, from 1 July, have to formerly disclose the amount of commission they are due to receive on each sale to the client in a newly created Important Facts Document. This disclosure must also be followed by a call from the life company providing the scheme to check, among other things, that the adviser’s remuneration has been properly explained.

However, Rosetta Fong, chief executive of Convoy Financial Services – a listed company and the largest financial advisory business in Hong Kong, said, while in support of safeguarding the consumer’s interest, there is “room for improvement” in the new rules.

“According to the requirement, only insurance brokers are incumbent to disclose the amount of commission and fee to the clients,” she said.

“It means when insurance agents and banks sell insurance products, they are not obliged to comply with this new guideline on remuneration disclosure. This is unfair to brokers and consumers will feel confused.

“This unequal arrangement might lead to improper use of such disclosed information by some illegitimate industrial players. To protect the consumers’ interest at large, standard guidelines for the whole industry should be considered to enhance the level of transparency.”

In response to our earlier reports, Selina Lau, general manager, communications & committee at the Hong Kong Federation of Insurers said: “The Important Fact Statement highlights and summarizes the most important facts relating to an ILAS policy, including the purpose of the purchase, affordability, suitability, charges, payment terms, and alerting the customer that remuneration may be paid to the intermediary that recommends/sells the ILAS product.

"We believe that the IFS will help ensure customers have a clear understanding of the key features of the products they purchase and the risks involved.”

Simon Danaher
Article from http://www.international-adviser.com/news/asia/

Pru Life UK, Plan International sign pact for school-based disaster preparedness projects in Tanay

May 7, 2013 9:30am

Article from http://www.gmanetwork.com/news/story/307152/cbb/pru-life-uk-plan-international-sign-pact-for-school-based-disaster-preparedness-projects-in-tanay

Pru Life UK’s AVP for Advertising and Communications Reena J. Villamor and Senior Manager for Brand Activation and Community Relations Anna Gizelle V. Camua (fourth and fifth from left), together with partners from implementing organization Plan International, pose for a group photo with high school students from Tanay, Rizal who will be attending the summer camp workshops on disaster preparedness this May.

Pru Life UK, representing the Prudence Foundation, and Plan International recently signed a covenant of commitment with partner government agencies and organizations to implement a three-year disaster risk reduction program in vulnerable barangays in Tanay, Rizal.

At the launch program held in Tanay, officers of the local government unit led by the Municipal Mayor’s office, local crimewatch volunteers, as well as school administrators from the Department of Education, including teachers and students from six beneficiary public secondary and elementary schools, gathered together to pledge their commitment to the Climate Smart Disaster Risk Reduction project that will be implemented by Plan International.  

Plan International will integrate the school-based disaster preparedness projects in public high schools of Marciana Catolos, Tanay and Tanay West, as well as public elementary schools of Marciana Catolos, Patricio Jarin and Wawa.  

Tanay, Rizal was one of the worst-hit towns during the typhoon Ketsana (Ondoy) in 2009, and thousands of residents from its low-lying coastal barangays remain vulnerable due to its proximity to Laguna de Bay. 

Teachers and students from the six public schools will be trained starting May on disaster risk reduction, first aid, water safety and other preparedness training including camp management.

“We aim to equip children, families and communities with survival skills in times of extreme natural disasters,” Pru Life UK’s SVP and Chief Marketing Officer Belle Tiongco explained. 

“With Plan International’s school-based disaster preparedness program, we will help ensure the safety of schools and the children’s continued access to education by minimizing disruption of classes in times of disaster.”

“The focus of our project is child-centered disaster preparedness,” Emil Paz, Technical Officer for Research and Program Development of Plan International said, while briefing participants about the project.  Plan International has been actively involved in disaster relief and rehabilitation for many years, “But we all know this is not enough especially since typhoons are becoming stronger, even more frequent, and more communities are getting affected.”

“Consciousness for disaster preparedness should be an everyday practice,” Dr. Gabriel C. Piguing, Municipal Administrator, said in his remarks during the program. “We are happy that this project now involves our students and children in schools, that way, even they are equipped to respond to emergency and disaster.  It will really benefit our community if more residents are ready and prepared in times of emergency.”

The Prudence Foundation and Pru Life UK have recently announced Php100-M financial support for new disaster preparedness and pre-school child care programmes that will directly benefit more than 100,000 Filipinos in more than 100 barangays in Metro Manila, and in Bulacan, Rizal, and south central Mindanao provinces.

Established in 1996, Pru Life UK is a subsidiary of British financial services giant Prudential plc. Pru Life UK is the pioneer and current market leader of unit-linked or investment-linked life insurance products, and is one of the first life insurance companies approved to market US dollar-denominated unit-linked policies in the country. Pru Life UK is a life insurance company and is not engaged in the business of selling pre-need plans.

Prudential plc is a United Kingdom-registered company. Its regional headquarters, Prudential Corporation Asia, is based in Hong Kong.

Pru Life UK and Prudential plc are not affiliated with Prudential Financial, Inc. (a US-registered company), Philippine Prudential Life Insurance Company, Prudentialife Plans, Inc. or Prudential Guarantee and Assurance, Inc. (all Philippine-registered companies).

May 7, 2013 9:30am

Article from http://www.gmanetwork.com/news/story/307152/cbb/pru-life-uk-plan-international-sign-pact-for-school-based-disaster-preparedness-projects-in-tanay