Name
Global FinTech Guide
Country _ Name
Singapore
SectionTitle
InsurTech
Body
InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.

Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.

Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.

Introduction

Attitude of the country towards InsurTech-services

Singapore is generally receptive towards InsurTech-services, with traditional several providers opting to provide insurance services through technology-enabled means. The Monetary Authority of Singapore (MAS) had also successfully incubated, PolicyPal, the first digital insurance manager licensed in Singapore under its MAS FinTech Regulatory Sandbox initiative. This shows a generally positive attitude by the authorities towards such developments in Singapore.


Legal affairs

Obligations and requirements to provide InsurTech-services

There is no legislation that specifically governs the sale of insurance through digital platforms. Providers of insurance services through such platforms are subject to the same requirements as traditional insurance providers.
The Insurance Act 1966 (Insurance Act) is the main legislation regulating insurance activities in Singapore, and in some cases other legislation such as the Policies of Assurance Act 1867, the Marine Insurance Act 1906 and the Motor Vehicles (Third Party Risks and Compensation) Act 1960 may apply.
A licence must be granted under the Insurance Act prior to commencing “insurance business in Singapore”, which means the business of assuming risk or undertaking liability in Singapore under policies, and of —

  • receiving proposals for policies in Singapore;
  • issuing policies in Singapore; or
  • collecting or receiving premiums on policies in Singapore,
MAS has also issued additional guidelines on insurance relating to online distribution of life policies with no advice, which is binding on all applicable licensed financial advisers and exempt financial advisers.
The arranging of any contract of insurance in respect of life policies (other than a contract of reinsurance) is a financial advisory service subject to a licensing requirement under the Financial Advisers Act 2001 (FAA), unless exempt.

Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area

N/A


Economic conditions

Market size for InsurTech-services and biggest companies in this business area
Notable digital insurance service providers that have emerged in the market in recent years include Singapore Life (Singlife) is a prominent digital-first insurer and Bolttech which runs a insurance distribution platform.

Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area

N/A

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