MAS to soon allow online nominations for insurance beneficiaries

MAS to soon allow online nominations for insurance beneficiaries | Insurance Business Asia

Insurance News

MAS to soon allow online nominations for insurance beneficiaries

Two approaches will be made available beginning Jan. 2, 2024

Insurance News

By
Kenneth Araullo

The Monetary Authority of Singapore has announced insurance policyholders will soon be able to nominate their beneficiaries online, as per amendments made to a regulation that will be implemented for insurers starting Jan. 2, 2024.

Currently, nominating beneficiaries involves hardcopy submissions with in-person witnessing. As digital alternatives to physical witnessing are now possible, two approaches will be made available starting next year:

Online witnessing – this involves the witnessing of the policyholder’s signing of the online form, which can be carried out using an audiovisual link
Online attestation – instead of online witnessing of the signing of the form, an attestor will make an online declaration of the policyholder’s circumstances

According to a news release, secure electronic signatures must be used for online submissions to verify the authenticity and integrity of such records. Both online witness and/or online attestor must also declare that the policyholder is not under any undue pressure and understands the purpose and effect of making the nomination.

“Technology has enabled the development of robust online alternatives that make it easier for policy owners to nominate their insurance beneficiaries,” said Marcus Lim, MAS banking and insurance assistant managing director. “MAS encourages insurers to make these options available to their customers, while ensuring that robust controls remain in place.”

Life Insurance Association (LIA) of Singapore president and Prudential Singapore CEO Dennis Tan also commented on the development.

“Nomination of beneficiaries is important to ensure the payable benefits are paid out to the intended persons according to the wishes of our customers,” Tan said. “We welcome this enhancement by MAS to provide customers with greater flexibility and convenience to nominate beneficiaries and will work with our members to roll out progressively.”

What are your thoughts on this story? Please feel free to share your comments below.