Uptake of new direct-purchase insurance plans still low

Singapore

WHEN it comes to buying insurance, consumers still prefer seeking financial advice to buying direct-purchase plans - even if direct-purchase plans mean lower premiums, since neither financial advisors nor commissions are in the picture.

Khoo Kah Siang, president of the Life Insurance Association (LIA) Singapore, said on Thursday that interest in direct-purchase insurance (DPI) plans - the suite of basic life insurance products sold without financial advice - has been lukewarm. Since its launch last month, the 12 life insurers offering DPI have received enquiries, but recorded a "pretty small" volume of purchases, he said.