IPP Financial Advisers ordered to pay S$239,851 financial penalty in Singapore

IPP Financial Advisers has been ordered to pay the financial penalty of S$239,851 (US$176,438) imposed by the Competition Commission of Singapore (CCS) together with interest and costs of the appeal, after the Competition Appeal Board (CAB) dismissed its appeal. 

CCS imposed the penalty in March 2016, after finding that IPP, together with nine other financial advisers, had violated the Competition Act by engaging in an anti-competitive agreement to pressure their competitor, iFAST Financial, to withdraw its offer of a 50% commission rebate on competing life insurance products on the Fundsupermart.com website. Further, CCS noted that the Fundsupermart offer was particularly attractive to customers because the general industry practice of financial advisers was not to provide commission rebates to policyholders.

The launch of iFAST’s Fundsupermart offer disrupted the financial advisory industry in the distribution of life insurance products in Singapore. The leveraging of iFAST’s established online platform to reach out to its wide client base was innovative and efficient, allowing iFAST to save on distribution costs. These cost savings could then be passed on to consumers through a significant

Insurance agents versus Bancassurance

So which distribution channel sells more insurance in Singapore?
Tied-insurance agents or banks through bancassurance?

According to first half 2013 statistics from the Life Insurance Association of Singapore tied-insurance agents continue to be the leading channel in both new business weighted premium and number of policies.

By weighted premium:
Tied agents: 42%
Bank distribution: 36%
Financial Advisers: 17%
Others: 5%

Is insurance a sunset industry?

Too many insurance products and too much competition.
The insurance market is over saturated.
There are too many insurance agents.
Is insurance a sunset industry?


Common questions and statements whenever people talk about the insurance industry in Singapore.


So is insurance a sunset industry?
Not according to the latest statistics released by the Life Insurance Association of Singapore.