The Business Times
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THINKING ALOUD

Investment-linked insurance products: complexity label a long time coming

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Genevieve Cua

Genevieve Cua

Published Wed, Sep 10, 2025 · 06:00 PM
    • The investment-linked insurance product wrapper features high recurring fees which exert a downward pull on net returns for policyholders.
    • The investment-linked insurance product wrapper features high recurring fees which exert a downward pull on net returns for policyholders. PHOTO: PIXABAY

    THE recent news about the rising number of complaints against investment-linked insurance policies (ILPs) isn’t surprising. In 2024, complaints about ILPs filed with the Financial Industry Disputes Resolution Centre (Fidrec) reportedly hit a high of 211, up from 55 in 2023.

    This year, 57 complaints were lodged in the first half-year.

    ILP sales have surged since around 2022, overtaking traditional participating plans. The sale of ILPs, especially those sold in single-premium mode, tends to rise when markets are strong. But for a product as complex as an ILP, a rising risk appetite driven by fear of missing out and aggressive sales tactics by insurance representatives make a potent brew for mis-selling.

    Thinking AloudInsuranceMonetary Authority of Singapore

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