SINGAPORE – The Monetary Authority of Singapore (MAS) is set to roll out guidelines for financial institutions to adopt fair and responsible practices towards customers by the middle of 2024, paving the way for people with disabilities and those with mental health conditions to have access to better insurance coverage.
The update was given by Deputy Prime Minister and Finance Minister Lawrence Wong in a written reply to a parliamentary question on Tuesday.
The guidelines, which initially covered just insurance for those with disabilities, were meant to be finalised by June 2021.
But the process was delayed as MAS had assessed that the scope of the guidelines could be expanded to include more financial institutions, transactions and customers, said MAS’ executive director of the insurance department Daniel Wang and director of the disability office at the Ministry of Social and Family Development Lim Yi Jia in a reply to a Straits Times forum letter in March 2022.
DPM Wong, who is also chairman of MAS, said in the written reply that in December 2022, the authority had issued a consultation paper on guidelines for financial institutions on fair practices towards customers, including those with disabilities and mental health conditions.
Under the proposed guidelines, MAS made it clear that insurers should not indiscriminately reject an application solely based on declared personal information such as a disability or medical condition, including a mental health condition. Instead, they are expected to carry out an objective assessment of every application based on reliable information or data relevant to the risks being insured, he said.
“However, insurers are not prohibited from declining applications, setting higher premiums or applying appropriate conditions in view of the risks presented by an applicant. For health insurance, insurers assess risks based on a customer’s medical history, health condition, and health risks arising from any known conditions. Having a robust assessment framework is fundamental to the long-term sustainability of an insurer’s business.”
MAS is carefully considering feedback received on the proposed guidelines. After finalising and issuing the guidelines in 2024, Singapore will also look towards revising its position on Article 25(e) of the United Nations Convention on the Rights of Persons with Disabilities (CRPD).
The article prohibits discrimination against people with disabilities in the provision of health and life insurance.
Singapore had placed a reservation on this article because it does not mandate private insurance companies to provide insurance for those with disabilities. A reservation is a declaration by a State made upon signing or ratifying a treaty that the State reserves the right not to abide by certain provisions of the treaty.
Singapore will work towards withdrawing its reservation on Article 25(e) of CRPD.
“Singapore supports the principle of non-discriminatory treatment towards persons with disabilities,” said DPM Wong in the reply.
