Before the advent of the Internet, the world’s largest market, the insurance industry used to be dominated by huge insurance companies that controlled a great deal of the market. This dominance led to price gouging and other abuses on the part of the customers. As insurance companies attempted to respond to this, the government stepped in to regulate the industry. However, there were many problems with the system. As a result, the government decided to institute an insurance scheme called The Real Estate Settlement Procedures Act to curb any unfair practices and protect the interests of the customers.
list of insurance companies in singapore must be licensed by the Government, and they are required to abide by some rules. But in spite of these restrictions, insurance companies have still tried to use their clout to squeeze money out of the policyholders. Recently, the government realized this problem and decided to form a regulatory body called the Property and Casualty Insurance Regulatory and Development Agency (Pcera).This agency was designed to ensure fair competition among insurers and reduce the cost of premiums. Through Pcera, now all insurers are required to register with the regulator, which makes them look more professional and legitimate.
Another important step taken by the Government in Singapore is to make insurance more transparent. Earlier, only the largest insurers could afford to list their names on the exchange. However, the Real Estate Settlement Procedures Act introduced last year allows any person who buys or sells a house to make a detailed disclosure of all relevant information about the property, including the insurance policy. This includes a full list of all insurance policies held by the insurer, their respective deductibles, renewal dates, charges, discounts, and additional benefits. The new law is expected to improve competition among insurance companies and reduce costs and unnecessary fees paid by customers.