Singapore Life Snaps Up Assets

Tom Burroughes

9 January 2018

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Under the agreement, Singapore Life will become responsible for all Zurich Life Singapore's customers' policies, totalling approximately S$6 billion ($3.32 billion) of coverage for life, critical illness and disability benefits.

This agreement follows Zurich Life Singapore's closure to new business in December 2015 and does not affect any of Zurich's other life or commercial insurance businesses in Singapore.

"All policyholders who transfer to Singapore Life will continue to have the existing terms and conditions of their policies upheld and will enjoy the same service level as existing Singapore Life customers – including 24/7 access to their policies online," Singapore Life said. "All existing relationships between customers and their financial advisers will be maintained as well," it continued.

Late last year, WBA interviewed Singapore Life chief executive officer Walter de Oude about the launch of his business and its positioning within the wider Asian wealth management space. The firm is making a point of its digital model and what it says is a relatively efficient, low-cost delivery approach.

The transfer of all Zurich Life Singapore's policies to Singapore Life is expected to be completed in the first half of this year, subject to confirmation by the High Court, reports said.

In June 2017, the Monetary Authority of Singapore, the regulator, gave the green light to Singapore Life to be a fully licensed direct life insurer. In April, Singapore Life raised $50 million in its Series A funding round, with backing from shareholders such as Chong Sing Holdings FinTech Group Limited and IPGL Limited. It has also partnered with two reinsurers – Munich Re Group and Pacific Life Re Limited.

Singapore Life told WBA that term life and critical illness policies have big potential for growth in Singapore and other parts of Southeast Asia.

The wealth management “toolbox” has already seen development of what are called private placement life insurance policies in recent years. These are structures directed at wealthy individuals enabling them to create tax-efficient, arm’s length portfolios and are recognised in a number of jurisdictions. Singapore Life said it is looking at developing PPLIs at some stage in the coming months. (Players in this field include Swiss Life, Vie and Lombard International Assurance.)