MAS says insurance disputes rare with most resolved by mediation

FIDReC completed an average of 246 mediation and adjudication cases.

Singapore’s financial regulator said insurance claim disputes remain rare, with most cases resolved through mediation or adjudication rather than litigation.

Over the past three years, FIDReC completed an average of 246 mediation and adjudication cases annually related to insurance claim disputes, whilst the Monetary Authority of Singapore (MAS) received an average of 91 similar complaints per year. 

These cases represented less than 0.01% of total insurance claims handled by insurers.

According to MAS, more than 85% of cases at FIDReC were resolved through mediation or adjudication. 

Litigation was rare, with less than 0.1% of claims from major insurers — which make up 80% of the local market — brought to court.

Responding to parliamentary questions on 4 November, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, who also chairs the Monetary Authority of Singapore (MAS), said insurers are expected to pay all legitimate claims promptly and treat customers fairly during the claims process.

He said the MAS sets out clear expectations under its Guidelines on Fair Dealing and Guidelines on Risk Management Practices for Insurance Business, which outline standards for fair treatment of customers and proper claims handling.

When insurers fall short, MAS may require them to review their policies, improve internal processes, and make restitution to affected consumers.

Consumers who believe their claims have been unfairly rejected are encouraged to first approach their insurer, which must handle complaints independently and promptly. Unresolved cases can be brought to the Financial Industry Disputes Resolution Centre (FIDReC) for independent, low-cost mediation or adjudication.

Gan said the figures show that the current dispute resolution framework remains effective in addressing insurance claim disputes fairly and efficiently.