Allianz offer for Income Insurance sparks concerns among some

Without Income’s social mission, fears are that coverage will cost more

- Angela Tan

Allianz's plans to buy a majority stake in Income Insurance have sparked concerns among some Singaporeans over their health insurance plans tied to Income, despite the German insurer's assurances that there will be no change to national insurance programmes.

They also fear that Income's original social values and mission to provide coverage for lower-income groups will no longer apply once Germany-listed Allianz takes a controlling stake, spelling an end to affordable insurance coverage.

"As a listed entity, Allianz is answerable to its shareholders who have elected the board of directors. How will it manage Income's social mission in Singapore and its business goal of profit maximisation?" asked one Straits Times reader, a Singaporean who is also an Income policyholder.

Mr Lester Lee, 62, is among those worried.

The Singaporean and his entire family have relied on the Integrated Shield Plans (IPS) offered by Income to complement the basic healthcare provided by the MediShield Life health insurance plan.

"The foreign company can say anything now to secure the deal, but once it has a controlling stake, it can do whatever it wants to maximise profits. It's scary because I rely on Income Insurance," the retiree told ST on July 22.

This is even as Allianz has given assurances that it intends for Income to continue participating in national insurance programmes, including the IP plans.

The chief executive of insurance advisory Havend, Mr Eddy Cheong, noted that Income has been known to introduce products that might not be profitable but which would achieve a certain social outcome. "With the recent corporatisation and the impending deal, this may become less of a possibility in the long run," he said.