No. There is no specific regulation that generally governs the sale of all types of insurance products through online platforms. However, there are notices and guidelines issued in relation to the online distribution of life policies under certain circumstances. To this end, the Monetary Authority of Singapore (MAS) has issued: (i) to direct life insurers on 13 May 2016, the Notice on Direct Purchase Insurance Products - Life Insurers; (ii) to financial advisers on 30 March 2015, the Notice on the Distribution of Direct Purchase Insurance Products; and (iii) to direct insurers and financial advisers on 31 March 2017, the Guidelines on the Online Distribution of Life Policies with No Advice. The said guidelines set out the MAS' expectations on the safeguards that direct life insurers and financial advisers arranging life policies should put in place for the online distribution of life policies without the provision of advice.
Yes, the same requirements should apply as there is no distinction made between different modes of online sales. For instance, "online direct channel", in relation to the online distribution of life policies with no advice, is defined to mean any web portal or application in the internet.
All insurers distributing products online or through mobile applications should (i) comply with technology risk management guidelines, (ii) ensure that they formulate security controls, and (iii) implement system availability and recovery capabilities commensurate with the level of risk exposure for online services.
Yes, the KYC process may be done online or electronically. Insurers must ensure that their e-KYC process meets the usual KYC requirements prescribed by MAS' AML/CFT Notices and Guidelines.
Yes, the use of an electronic signature is sufficient to render terms and conditions as binding and enforceable. Under the Electronic Transactions Act (Cap. 88 of the Republic of Singapore), an offer and the acceptance of an offer may be expressed by means of electronic communications, and in such a case, the contract so formed will not be denied validity or enforceability solely on the ground that an electronic communication was used, save for certain limited instances of contracts which does not include insurance policies/contracts.
No specific regulation governing the advertisement of insurance products online; this is subject to the same regulations as advertising through other means. However, licensed insurers are required to provide certain prescribed information under MAS Notice 322 (Information to be Submitted relating to the Web Aggregator) in relation to a web aggregator which the MAS (or such person as the MAS may appoint) creates, develops and operates for the purposes of publishing certain information from time to time, to assist any person in the purchase of a policy.
The MAS Guidelines on the Online Distribution of Life Policies with No Advice provides that a direct life insurer should set up appropriate avenues to address general queries from its clients relating to the life policies offered on its online direct channel, including telephone or email helplines. The insurer should also provide information, such as contact details, information on the claims process and the process for filing complaints, on its online direct channel. Similar requirements apply to financial advisers.
There is no such obligation imposed yet.
No. There are no specific insurance licenses for the conduct of online sales, and insurers may perform online sales with their current insurance licenses. In relation to direct purchase insurance products (DPI) for life insurance, the insurer is required to obtain written approval from the MAS before offering any new DPI or re-priced DPI for sale to the public.
No. Insurance intermediaries may perform online sales with their current licenses. They do not need to make any additional registrations with any regulatory body to perform online sales. However, financial advisers arranging life policies via an online direct channel are required to comply with the Guidelines on the Online Distribution of Life Policies with No Advice.
No. Singapore law does not prescribe different levels of commission rates to be paid to insurance intermediaries for online sales as opposed to insurance sale through other means. However, note the Insurance Act (Cap. 142 of the Republic of Singapore) which provides that an insurer shall not pay to a registered insurance broker, in respect of the arranging or effecting of contracts of insurance by the insurance broker with the insurer, remuneration at a rate or on a basis that has been varied, having regard solely to all or any of the following: (a) the number of contracts so arranged or effected; (b) the total amount of premiums paid or payable under such contracts; and (c) the total amount of sums insured under such contracts.
Separately, the Insurance (Web Aggregator Fees) Regulations 2015 prescribe certain fees in relation to a direct life insurer's participation in a web aggregator.
Where there is a use of an intermediary for the online sales of an insurer's products, the insurer will likely generally be regarded as offering or selling its insurance products online but whether a legal agency or other relationship is established, and the extent of responsibility the insurer has in respect of the intermediary, will depend on the engagement of and scope of authority granted to the intermediary. The analysis would include consideration of factors such as: (a) whether the intermediary could be regarded as an outsourced service provider to the insurer; (b) whether the intermediary holds a separate licence to market products of the insurer; and (c) whether the intermediary is acting as an agent of the insurer (as an insurance agent) or an agent for insureds or intending insureds (as an insurance broker) (e.g., through a general platform hosting products of multiple insureds).