SINGAPORE - A culture of good conduct starts from the top and life insurance firms should put in place the processes needed to resonate with employees.
Making this point, Mr Lee Boon Ngiap, assistant managing director of capital markets at the Monetary Authority of Singapore (MAS), added that that the tone set by the board and senior management trickles down to those they interact with on a daily basis.
He was speaking on Monday (March 6) at the Life Insurance Association Singapore's (LIA) annual lunch, which followed its annual general meeting and election of office-bearers and management board for 2017.
In his address, Mr Lee also said remuneration based on sales is not the only key motivating factor in the industry, and in instances of misconduct, firms should always seek to identify the root cause.
Newly-elected LIA president Patrick Teow, who is also AIA Singapore chief executive, noted new disclosure initiatives under the Financial Advisory Industry Review will come into effect this year.
For instance, benefit illustrations will be renamed policy illustrations, and new disclosures on bundled products will be introduced.
LIA also signed a statement of intent with other financial institutions last month, with plans to create digital innovations for increasing choice and convenience, and lowering costs for consumers, added Mr Teow.