Singapore’s financial regulator said disputes over investment-linked policies (ILPs) more than doubled in 2024, prompting new consumer protection measures as the city-state seeks to strengthen oversight of complex financial products.
The Monetary Authority of Singapore (MAS) said 211 ILP-related cases were handled by the Financial Industry Disputes Resolution Centre (FIDReC) in 2024, up from an average of 83 cases annually between 2017-2024. The 2024 figure represented 0.1% of total ILPs sold that year.
However, cases have moderated in 2025, with 60 disputes filed in the first half compared to 122 in the same period last year, Deputy Prime Minister Gan Kim Yong told parliament.
The median amount sought by claimants fell to S$7,200 ($5,300) in 2024 from S$11,300 in 2017, according to MAS data.
Investment-linked policies combine insurance and investment components, with returns tied to underlying fund performance. Critics say the products’ complexity makes them unsuitable for many retail investors.
In response to the uptick in disputes, MAS proposed in July that ILPs be classified as “complex products” requiring enhanced consumer protections. The proposals include mandatory product highlight sheets with red warning bands and requirements for financial advice to vulnerable customers.
Additional safeguards taking effect from December 29 will require a trusted family member or caregiver to be present when vulnerable clients purchase ILPs.
“While the incidence of complaints is generally less than 0.1% of ILP products sold, MAS has proposed new measures to further strengthen consumer protection,” Gan said in his parliamentary response.
First, MAS proposed that financial institutions provide a standardised product highlights sheet to outline key risks, features, fees, and exit procedures of ILPs. This includes important questions for consumers to ask their financial advisers.
Second, MAS proposed for ILPs to be classified as complex products, Gan said. He added.
This classification acknowledges that ILPs combine insurance and investment elements. It also acknowledges that the policy’s performance is subject to the performance of the underlying fund linked to the policy, as well as ongoing insurance premium charges, which increase with age.
MAS aims to finalise the new rules in early 2026. The regulator said existing safeguards already require financial institutions to demonstrate product suitability and perform verification calls before sales are concluded.