MAS Seeks Industry Comment on Proposed Health Insurance Regulatory Framework
Singapore, 30 August 2002. The Monetary Authority of Singapore (MAS) today issued a consultation paper on its proposal to implement a regulatory framework for health insurance business.
2 Health insurance, a key component in the healthcare financing business, is likely to play a more important role in the future. Financing of healthcare services has become a critical national issue in Singapore with its rapidly ageing population and rising expectations and demand for better and more sophisticated health services by an increasingly well-informed and more affluent public.
3 There are currently no provisions in the Insurance Act that are specific to health insurance. In light of the expected strong growth in the health insurance sector, and the need to provide reliable long-term health insurance to the public, it is imperative that the legislation be amended. This is for the protection of policyholders to prevent possible mis-selling of health insurance products and to ensure that insurers are able to meet their health insurance obligations.
4 Under the proposed framework:
- Health insurance products deemed to be of a long-term1 nature can only be underwritten by life insurance companies while short-term health insurance products can be underwritten by both life and general insurance companies;
- Intermediaries are prohibited from advising or arranging health insurance products unless they have attained the required qualification;
- The level of disclosure is enhanced, especially the disclosure of information that allow consumers to make an informed buying decision that suit their needs; and
- Advice on health insurance is to be made on a reasonable basis.
5 The consultation paper is available on MAS' website at here ()
6 Industry participants have until September 30, 2002 to submit their comments on the consultation paper. They may send their comments to firstname.lastname@example.org or write to the Insurance Supervision Department.
1 Long term health insurance policy is defined as a health insurance policy of duration exceeding 5 years and not unilaterally cancelable by the insurer.