- Insurer to consolidate the fees and charges for ILP that are imposed upfront (other than charges for insurance coverage), to be disclosed as a single charge and termed as “Premium Charge”.
- For example, if a product currently includes premium allocation rate, sales charge and bid-offer spread, going forward, these shall be combined into a single Premium Charge. Premium
The Monetary Authority of Singapore (MAS) has released the amended MAS Notice 307 on 08 October 2020. This revision will impact investment-linked policies (ILP) issued by all insurers from 08 October 2021 onwards.
I applause for the new regulation as the charges for investment-linked policies are always complicated and confusing. This gives the consumer a clearer understanding of how much is the cost to their investment products.
What are the key changes to Investment-Linked Policies?
In a nutshell, with effect from 8 October 2021, all insurers must consolidate any upfront fees and charges description into a single terminology “Premium Charge”.
