MAS rejects immediate Insurance Act changes for e-commerce sales

Gan told Parliament on 12 February the regulator will keep watching market shifts.

The Monetary Authority of Singapore (MAS) does not plan immediate changes to the law to address the sale of insurance products through e-commerce platforms, but said it will continue to monitor developments.

In a written reply to a Parliamentary Question for the sitting on 12 February, Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry and Chairman of the Monetary Authority of Singapore, responded to Melvin Yong Yik Chye, MP for Radin Mas SMC.

Melvin had asked whether the MAS intends to amend the Insurance Act to ensure consumers’ interests are protected as insurance and financial services firms partner e-commerce platforms to distribute their products.

Gan said financial institutions may distribute a range of financial products through different channels, including e-commerce platforms. 

He added that all financial institutions and their intermediaries are expected to uphold proper conduct and put in place consumer safeguards when distributing products. 

When advertising on e-commerce platforms, they are also expected to assess whether the platforms can comply with their digital advertising practices.

Under the Insurance Act, general insurance agents distributing general insurance products, including through e-commerce platforms, must be registered with the Agents’ Registration Board of the General Insurance Association of Singapore and comply with its rules on professionalism, conduct and competency standards. 

Agents that fail to comply may face disciplinary action, including cancellation of registration.

Gan said current safeguards are adequate, but the regulator will continue to assess changes in the market and introduce new safeguards if necessary.