MONITORING OF GENERAL INSURERS’ COMPLIANCE WITH SINGAPORE GENERAL INSURANCE CODE OF PRACTICE IN PROCESSING CLAIMS

Not too long ago, an irate resident highlighted to me that it took a long time for a general insurer to process his claim. When I looked into the matter, I noted that the General Insurance Association of Singapore, which consists of general insurers, committed to a Code of Practice in which it was stated that insurance claims will be processed on a timely basis. I therefore asked the Prime Minister whether MAS, the regulator of insurance companies, has a role in overseeing general insurers’ adherence to the Singapore General Insurance Code of Practice, specifically in claims processing. Additionally, I asked whether MAS investigates complaints from claimants whose insurance claims aren’t processed as per these standards. My parliamentary question and Deputy Prime Minister’s response (for the Prime Minister) are set out below.

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Mr Murali Pillai asked the Prime Minister (a) whether the Monetary Authority of Singapore (MAS) monitors general insurers’ compliance of the requirements under Paragraph 6.2 of the Singapore General Insurance Code of Practice when they process claims; and (b) whether the MAS investigates complaints by claimants whose claims are not processed in accordance with the requirements.

Mr Lawrence Wong (for the Prime Minister): The Singapore General Insurance Code of Practice (“Code”) is issued by the General Insurance Association of Singapore (GIA) and sets out guidelines and standards as best practices for its member insurers to follow. Paragraph 6.2 of the Code relates to GIA member insurers’ commitment to process claims on a timely basis, with service standards stated therein. If a GIA member has not fulfilled its obligations with the Code, the policyholder may refer the matter to GIA.

MAS in its Guidelines on Risk Management Practices for Insurance Business establishes supervisory expectations for all insurers to set out clear procedures for notification, assessment and settlement of claims, and monitor the claims handling process. MAS expects insurers to have in place an internal dispute resolution process to handle all consumer complaints and feedback independently, effectively and promptly. As part of MAS’ ongoing supervision of insurers, complaints received from consumers relating to non-adherence of disclosed service standards will be referred to the relevant insurer to handle, and MAS will track that an appropriate response is provided to the consumer.