Singapore investment-linked policy sales double while consumer complaints climb
Sales of investment-linked policies in Singapore have more than doubled over three years, yet complaints about misrepresentation and inadequate disclosure have risen sharply.
Weighted new business premiums for investment-linked policies in Singapore rose to S$2.88 billion in 2025, marking a 120 percent increase since 2022, according to the Life Insurance Association. During the same period, the Financial Industry Disputes Resolution Centre saw complaints surge from 42 to 164, with a notable spike in 2024 and 104 new claims in the first half of 2026. Industry insiders say the surge is driven by policies that require little or no health underwriting and offer welcome bonuses funded by higher early-year charges.
Consumers, especially older adults, often mistake these policies for traditional insurance, overlooking variable returns and substantial fees. Advisors are urged to highlight the lack of capital guarantees and to ensure buyers understand premium commitments, surrender charges, and the importance of the 14-day free-look period.
Why it matters
Rising sales of complex insurance products amid growing consumer complaints highlight risks for investors and regulators in Singapore.
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