Insurance policyholders can nominate beneficiaries online from 2024
Janice Lim
FROM Jan 2 next year, insurance policyholders will be able to nominate their beneficiaries online, announced the Monetary Authority of Singapore (MAS).
With amendments made to regulations governing the nomination of beneficiaries, insurers will be able to provide digital means to replace the current process of hard-copy submissions with in-person witnessing, said MAS in a media release on Wednesday (Jul 26).
One digital approach would be to have the person witnessing the policyowner sign the online form using an audio-visual link.
Another approach is to have an attestor make an online declaration on the policyowner’s circumstances, instead of witnessing the signing of the form online.
MAS said that secure electronic signatures must be used for online submissions, given the importance of the authenticity and integrity of records on insurance beneficiary nominations.
An example of a secure electronic signature provider is Sign with Singpass, which uses signing certificates issued by Singapore’s National Certificate Authority.
Both the online witness or online attestor will also have to declare that the policyowner is not under any undue pressure and understands the purpose and effect of making the nomination.
Marcus Lim, assistant managing director for banking and insurance at MAS, said: “Technology has enabled the development of robust online alternatives that make it easier for policyowners to nominate their insurance beneficiaries. MAS encourages insurers to make these options available to their customers, while ensuring that robust controls remain in place.”
Dennis Tan, president of the Life Insurance Association and chief executive officer of Prudential Assurance Company Singapore, said that the industry welcomes this enhancement by MAS to provide policyholders with greater flexibility and convenience to nominate beneficiaries and that the association will work with its members to roll these digital options out progressively.
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