Dear readers, I read that Income Insurance is in discussion to enter a partnership with German insurer Allianz. It was reported that after the partnership, Allianz is expected to acquire a significant stake in Income. Based on what I have read, an application for the partnership has been filed with Monetary Authority of Singapore (MAS).
Income Insurance was formerly known as NTUC Income Insurance Co-operative (NTUC Income) and now operates as Income Insurance Limited, after the successful transfer of the insurance business of the co-operative, NTUC Income to Income Insurance, as part of a corporatisation exercise completed on 1 Sep 2022.
I bought some insurance policies when the company was still NTUC Income. With NTUC Income branding, back then, I felt a sense of comfort and trust knowing that my insurance is with a local company with linkage to a strong brand name in NTUC and very focused on insurances.
I was surprised to learn that in 2022, the NTUC Income would go on to operate as Income Insurance as part of a corporatisation exercise. Subsequently, I felt as a policyowner, I am no longer able to relate to the company heart-wise with the drop of NTUC from the company branding. Up to today, I am not sure whether Income Insurance is still under the NTUC umbrella of businesses and subsidiaries even though I would think so.
And now, with the proposed partnership with Allianz where the latter, a foreign company would reportedly acquire a significant stake in Income, to be frank, I am worried on the impact of my current insurance policies with Income if the company under the new partnership has a different corporate direction, e.g. to pursue corporate growth amidst the stiff competition as versus ensuring insurance policy holders’ come first.
Further, the policies when I bought was with NTUC Income, a local, Singapore company and not with another insurer in mind (not Income and Allianz as with the proposed partnership now). With a new German company in Allianz coming aboard via the partnership and reportedly acquiring a significant share in Income, it is akin to another insurance company that is coming to take over in part the insurance policies which I had bought.
Hence, if the partnership goes through, I am worried whether the terms and conditions of the insurance policies I bought will be affected, whether premiums will be increased and capital assurance portion of my policy becomes linked to investment-linked performance. And I think my worries are with a basis, since my insurance policies will be with a company that is no longer effectively wholly the company (NTUC Income) that I bought from, if the partnership materialises.