Reply to Parliamentary Question on Impact of NTUC Income Corporatisation on Affordability and Access
QUESTION NO 2465
NOTICE PAPER 959 OF 2022
FOR WRITTEN ANSWER
Date: For Parliament Sitting on 14 February 2022
Name and Constituency of Member of Parliament
Mr Liang Eng Hwa, MP, Bukit Panjang SMC
To ask the Prime Minister (a) whether the recent announcement by NTUC Income to convert itself from an insurance co-operative to a corporate entity will have any impact on the affordability of insurance premiums going forward; and (b) whether workers will continue to have access to affordable insurance.
Answer by Mr Tharman Shanmugaratnam, Senior Minister and Minister in charge of MAS:
1 When NTUC Income Insurance Co-operative Limited (NTUC Income) was established in 1970, there were very few direct insurers. It filled a major gap: to provide affordable insurance to workers in Singapore.
2 The Singapore insurance market has since grown significantly, with more than 40 direct insurers today offering a wide range of retail insurance products. The insurance market today is also highly competitive. No single insurer dominates in terms of providing the most affordable or innovative insurance products. NTUC Income becoming a corporate entity should therefore not have an impact on the affordability of insurance products. NTUC Income has, on its own part, also said that it will remain committed to improving the financial well-being of Singaporeans via affordable and quality insurance solutions.
3 The best way to have affordable prices and wide choice of products is to ensure a vibrant and competitive industry. MAS will continue to promote this.