Business · Markets · 4 hrs ago
Investment-linked policy sales rise as complaints increase in Singapore
Investment-linked policies, or ILPs, combine insurance features with investments, and their value can rise or fall with financial markets.
In Singapore, new sales grew from S$1.31 billion in 2022 to S$2.88 billion in 2025.
Complaints about ILPs also increased, with 164 claims recorded in 2025, compared with 42 in 2022.
Many complaints involve alleged misrepresentation, unclear information or unsuitable advice, and some customers misunderstand the risks, fees or length of their premium commitment.
Insurers and advisers say simpler sign-ups, welcome bonuses and strong market performance have helped drive demand.
But returns and the money invested are not guaranteed, and welcome bonuses may be offset by higher charges in the early years.
Buyers need to understand that an ILP is an investment whose value can fall, not a guaranteed savings product.
Sales of investment-linked policies (ILPs) in Singapore more than doubled from 2022 to 2025, while complaints about them also increased.
Weighted new business premiums reached S$2.88 billion in 2025, up from S$1.31 billion in 2022.
Claims related to ILPs at the Financial Industry Disputes Resolution Centre rose from 42 in 2022 to 164 in 2025, after peaking at 211 in 2024.
Experts say simpler sign-ups, welcome bonuses and strong capital markets may have helped drive demand.
Mediators say some consumers misunderstand ILPs, including whether their capital and returns are guaranteed.
- Who
- Buyers of investment-linked policies, insurers and financial advisers in Singapore.
- What
- ILP sales have risen sharply as claims over alleged misrepresentation and inadequate disclosure have also increased.
- When
- Sales figures cover 2022 to 2025; claims figures include the first half of 2026.
- Where
- Singapore.
- Why
- Experts point to simpler sign-ups, welcome bonuses and strong capital markets as possible drivers of demand.
This story does not have two clearly opposing sides.
People like the idea of growing their wealth
People like the idea of growing their wealth
Weighted new business premiums were S$1.31 billion, and FIDReC received 42 ILP-related claims.
FIDReC received 211 ILP-related claims.
Weighted new business premiums reached S$2.88 billion, while FIDReC received 164 ILP-related claims.
FIDReC received 104 ILP-related claims, compared with 61 in the same period a year earlier.
- 2025 weighted new business premiums
- S$2.88 billion
- 2022 weighted new business premiums
- S$1.31 billion
- FIDReC claims in 2024
- 211
- FIDReC claims in first half of 2026
- 104
- Share of first-half 2026 claims from people aged 61 and above
- 35 per cent
Sources
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