Regulatory Alerts2015-03-30
Added · Updated
Notice on Direct Purchase Insurance Products
This Notice requires direct life insurers to manufacture and offer Direct Purchase Insurance Products (DPIs) from an official launch date, ensuring DPI premium rates are not higher and benefits are no less favorable than comparable non-DPI policies. Insurers must price DPIs without distribution expenses, use the prefix "DIRECT" for all DPIs, and obtain written approval from the Monetary Authority of Singapore (MAS) for new or re-priced DPIs at least one month before launch. The MAS sets conditions for re-pricing based on credible experience or changes in comparable products, and specifies a minimum sum assured of S$50,000 and an aggregated maximum of S$400,000 per life insured per insurer for Term Life DPI and Whole Life DPI. Effective 30 March 2015, the Notice applies to all direct life insurers, with transitional provisions for newly licensed or existing insurers not previously offering relevant products.
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