FWD-Income deal may see higher premiums on motor insurance

With one fewer digital player in underwriting, only 3 platforms offer relatively cheaper products

- Claire Huang

The wheels are in motion for Singapore drivers to have one fewer option if they want to buy cheaper motor coverage directly from insurers.

With digital insurer FWD out of the motor underwriting game, consumers now have only three platforms DirectAsia Insurance, Budget Direct Insurance and Singlife - where products are priced relatively lower as intermediaries are cut out.

To be clear, FWD still sells motor plans to customers directly online. The difference is that as of July 2, Income Insurance will underwrite the motor plans sold. Market observers said that this could possibly lead to higher premiums.

On July 3, FWD said in a statement that it will offer for the next 12 months "competitive premium rates during policy renewal". It added: "Customers with existing motor policies at FWD Singapore will not be impacted by the transition; there is no disruption to their current policies."

The motor insurance business in Singapore is a highly competitive one and FWD has been clocking losses.