Concerns raised over investment-linked insurance plans as demand for them goes up in S’pore

Article Date: 02 Sep 2025

Financial Industry Disputes Resolution Centre chief executive Eunice Chua said many of the complaints pertain to market misconduct.

Consumer complaints against investment-linked insurance policies (ILPs), hybrid products which allow one to invest and get insurance coverage at the same time, are at a high.

The number of complaints hit a peak in 2024 at 211, from 55 claims in 2023, according to the Financial Industry Disputes Resolution Centre (Fidrec).

In the first half of 2025, the claims dipped to 57, but still exceeds the 2023 full-year figure.

Many of the complaints pertain to market misconduct, which refers to practices like mis-selling or misrepresentation, inadequate disclosure of information about the ILP product or giving inappropriate financial advice, said Fidrec’s chief executive Eunice Chua. 

The rise in the complaints was first highlighted at the annual conference of the Association of Financial Advisers Singapore on July 24.

Consumers try to resolve the issue with their financial institution or insurer, failing which they can approach Fidrec for help.

Ms Chua said the majority or 57 per cent of ILP-related claimants are aged 50 and below, according to claims data from 2022 to the first half of 2025.

Those who are in the 61 and above age cohort comprise 16 per cent of claimants, while the remaining 27 per cent of complaints are made by those who are between 51 and 60 years old. 

ILPs have seen strong growth since 2022 as consumers turn to them for their investment and insurance needs, said Mr Chan Wai Kit, executive director of the Life Insurance Association (LIA) Singapore. Read the full article by Chor Khieng Yuit: https://www.singaporelawwatch.sg/Headlines/concerns-raised-over-investment-linked-insurance-plans-as-demand-for-them-goes-up-in-spore Disclaimer: This article is the intellectual property of its original author and publisher. We do not edit, create, or claim ownership of this content. All rights remain with the original author and publisher. This link is provided solely for reference and informational purposes. If you are the rights holder and believe your work has been misused, please contact us and we will remove the link promptly.