compareFIRST Review - Singapore's first industry-backed life insurance web aggregator

compareFIRST - Singapore's first industry-backed life insurance web aggregator has been "live" coming close to six months now. 

If you need a refresher on what it is: compareFIRST - What you need to know

You can check out the website here. 

compareFIRST

To test its user-friendliness, and usefulness, we got someone young and out of school not too long ago, who hasn't been working for too long, and does not know much about insurance to test the site and do a review.

And here's the feedback:

Complaints about insurance agents or financial planners?

Complaints or compliments on your recent experience with an insurance agent or financial adviser?

You can read about a previous post at:

Complaints against insurance agents or insurance companies

Moving forward, your views and feedback will be even more important with the implementation of the Balanced Scorecard Framework (BSC Framework). Read more about it: http://www.insuranceemart.com/2015/03/insurance-direct-purchase-and-web.html

So what is the key idea behind the Balanced Scorecard Framework?

The BSC Framework ensures that the remuneration of these representatives and supervisors are also tied to key performance indicators that are non-sales related. The variable income of these representatives and supervisors will be affected if they fail to provide suitable product recommendations or do not make proper disclosure of material information to clients.

As such, in reviewing the performance of their representatives and supervisors under the BSC Framework,banks, life insurance companies and licensed financial adviser firms are expected to contact their clients to obtain feedback about the latter’s experiences on their recent purchases of investment or insurance products.

For the full press release:

Industry Bodies Seek Consumers’ Cooperation In Providing Feedback on Recent Purchase Of Investment Products

Exhortation comes as financial advisers implement new Balanced Scorecard Framework

The Association of Banks in Singapore (ABS), Life Insurance Association of Singapore (LIA) and Association of Financial Advisers Singapore (AFAS) today jointly urged consumers to be forthcoming in giving feedback on their financial adviser representatives when evaluation of their recent experience in purchasing investment or insurance products is sought.

This comes as banks, life insurance companies and licensed financial adviser firms implement a new requirement under the Balanced Scorecard Framework (BSC Framework) this year.

compareFIRST - What you need to know

compareFIRST - Singapore's first industry-backed life insurance web aggregator is live! 

It is a joint effort by the Monetary Authority of Singapore (MAS), the Life Insurance Association Singapore (LIA), Consumers Association of Singapore (CASE), and MoneySENSE.

It is one of the key initiatives under the Financial Advisory Industry Review (FAIR). You can read more about the background at: http://www.insuranceemart.com/search/label/FAIR

A very comprehensive FAQ is available on compareFIRST's website: http://comparefirst.sg/wap/faqEvent.action

It will be a waste of your time to read (and ours to write) if we were to repeat them here. So here are some key points to clear any confusion/questions that you may have. 


A very important bonus question is right at the end. Read the last question before you even think about using compareFIRST. 

compareFIRST

What is compareFIRST?

compareFIRST is an informational portal on life insurance products.

You can compare Direct Purchase Insurance products, term life products, whole life products and endowment products sold by the various life insurers. 

Can I buy life insurance products through compareFIRST?

No. It is only an information portal. So you CAN’T buy products through this site. To purchase any of these products, you should approach your preferred insurer or financial advisor directly.

compareFIRST and Direct Purchase Insurance - Consumers Can Now Compare Life Insurance Products Online and Buy Them Without Commissions

The Monetary Authority of Singapore (MAS) announced that from 7 April, consumers can compare life insurance products of different companies using a new web portal called compareFIRST (www.comparefirst.sg). 

compareFirst logo

On the same day, life insurance companies will start selling Direct Purchase Insurance (DPI), a class of simple life insurance products that is sold without commissions and financial advice.

Both compareFIRST and DPI are initiatives under the Financial Advisory Industry Review or FAIR. (read all about FAIR: http://www.insuranceemart.com/search/label/FAIR) 

compareFIRST

compareFIRST is an interactive web portal that allows consumers to quickly compare the premiums and features of similar life insurance products offered by different insurance companies. It will help consumers make

Insurance direct purchase and web aggregator set to launch early April

As revealed in "Buying Life Insurance Products Directly from Insurance Companies without Commissions", the launch of a direct purchase insurance products (DPI) or a insurance direct channel will not be launched in time in the first quarter of 2015. 

The good news: Mr Ong Chong Tee, Deputy Managing Director, Monetary Authority of Singapore (MAS), has announced at a recent Life Insurance Association of Singapore luncheon that they will be ready by early April.

Here's what he said:

There are three key initiatives under FAIR (or Financial Advisory Industry Review) of particular relevance to the life insurance industry. These are the web aggregator, direct purchase insurance products and the balanced scorecard framework.

Web aggregator

First, the web aggregator. Life insurers offer a wide range of life insurance products to cater to the varied financial needs of consumers. However, it can often be a daunting task for consumers to be sufficiently informed of what’s available to meet his needs and to have some easy way to compare life insurance products.

I am pleased to note that a web aggregator will be launched in early April as a collaborative effort between MAS, CASE and the life insurance industry. This will provide a single information portal that will enable consumers to easily look up available life insurance products and compare indicative quotes based on specified parameters in a user-friendly and interactive manner.

Direct Purchase Insurance

Second, direct purchase insurance products, or DPI. This is a new class of life insurance products for basic needs that is “retail-access friendly”. 

Buying Life Insurance Products Directly from Insurance Companies without Commissions

If you have been following the FAIR Review, or officially the Financial Advisory Industry Review, you may be wondering what is the status or development thus far. (Read about it at Monetary Authority of Singapore issues finalised FAIR initiatives to lift insurance industry standards.)  

The direct channel through which “basic insurance” products can be purchased with a nominal administration fee, had seem to be one of the easier initiatives to be implemented with expectation that it could be implemented in the first quarter of 2015.

In a press release then, Mr Lee Boon Ngiap, Assistant Managing Director for Capital Markets, MAS, had said, “When direct purchase products are introduced in early 2015….”

However, industry sources say, it will not be ready by the first quarter of 2015 and will likely be pushed to the second quarter at the earliest.

While awaiting its implementation, here’s a recap on what this initiative is about, the types of insurance products that will be sold through this channel, and the maximum sum assured that will be available.

Insurance price comparison website in Singapore

If you have been following Monetary Authority of Singapore's Financial Advisory Industry Review (FAIR) initiatives to lift insurance industry standards, you will know that one of the initiatives is a web aggregator to enhance comparability amongst life insurance products.

So I guess the question is, how effective will that be?

While it will be easier to compare products, it is not all positive.

For example, recently the Financial Conduct Authority (FCA) in the UK has begun a thematic review into insurance price comparison websites (PCWs).

Monetary Authority of Singapore issues finalised FAIR initiatives to lift insurance industry standards

What will be introduced to the financial advisory and insurance industry with the Financial Advisory Industry Review (FAIR) initiatives?

(a) a balanced scorecard remuneration framework which rewards the provision of good quality advice to align the interest of FA representatives with that of customers;

(b) a direct channel through which “basic insurance” products can be purchased with a nominal administration fee; and

(c) a web aggregator to enhance comparability amongst life insurance products.

Full release: