Income Insurance

Income Insurance

Company type	Public
Industry	Insurance
Founded	1970;54 years ago (1970)
Area served	Singapore, Indonesia, Malaysia, Vietnam
Key people	Ronald Ong (Chairman) Andrew Yeo (CEO)
Products	Life, health, and general insurance, savings and investment-linked products
Total assets	S$47.2 billion [1]
Website	www.income.com.sg

Income Insurance Limited, commonly known as Income and previously also known as NTUC Income, is a composite insurer based in Singapore, offering life, health and general insurance. Initially founded as a cooperative in 1970 under the National Trades Union Congress (NTUC), it was restructured as a public non-listed company limited by shares in 2022 as part of a corporatization exercise.

Currently, it has seven branches and lite^{[ further explanation needed ]} branches respectively across Singapore, as well as operations in Indonesia, Malaysia, and Vietnam.

History

The idea of co-operatives, also known as social enterprises, was first conceived at NTUC's Modernisation Seminar in 1969, where delegates from NTUC-affiliated unions gathered to discuss the challenges Singaporean workers were facing. Then, Singapore was a developing nation with a population comprising mostly blue-collar and low income workers. ^[2] One of the founding leaders of NTUC, Devan Nair, articulated the need for the labour movement to turn into a social institution to serve Singaporean workers in various ways. Then-Finance Minister Goh Keng Swee supported this and urged NTUC to set up social enterprises in areas such as life insurance and essential consumer goods to meet the needs of the working population. ^[3] NTUC Income was established in 1970.^{[ citation needed ]}

In April 2010, NTUC Income launched the Income Family Micro-Insurance and Savings Scheme (IFMISS), a free insurance scheme for low-income households with young children. ^[4] In August 2013, NTUC Income became the first insurer in Singapore to provide insurance coverage specially designed for children with autism. The plan provides coverage for medical expenses from accidents and infectious diseases. ^[5] In December 2014, NTUC Income expanded its insurance coverage for the special-needs community when it unveiled SpecialCare (Down Syndrome). ^[6]

In 2021, NTUC Income also expanded to Indonesia, Malaysia, and Vietnam with partnerships in those countries, operating by an insurance-as-a-service model. ^[7]

On 6 January 2022, NTUC Income announced it would be restructured from a cooperative to a company and rebranded as Income Insurance Ltd, amid stiff competition in the insurance industry, with no changes to staff and existing policyholders' coverage. NTUC Enterprise would remain the majority shareholder. ^{[8] [9]} The corporatisation exercise was completed on 1 September 2022. ^{[10] [11]}

Proposed sale of majority stake to Allianz

In July 2024, the NTUC Enterprise co-operative gave an irrevocable undertaking to sell a majority 51% stake of Income Insurance Ltd to German insurer Allianz. ^[12]

NTUC Enterprise Chairman Lim Boon Heng stated that "is a capital-intensive business and to grow, there is a need to tap the capital markets" and that the sale was necessary because the "strength of Allianz’s financial position will provide additional support to Income Insurance where required". ^[13]

In Parliament, Minister of State Alvin Tan explained that NTUC Income operated in a competitive environment and its capital buffers had repeatedly come under pressure: "NTUC Enterprise has supported Income with capital injections and will continue to do so", but "NTUC Enterprise could not continue to operate on its own". Second Minister for Finance Chee Hong Tat further assured Parliament that after the sale, NTUC Income's social mission would not change, it "will continue to look after the well-being, especially of the lower-income policyholders", and the "MAS [the Monetary Authority of Singapore] will look at the interests of the policyholders". ^[14]

The Singapore Government announced on 14 October 2024 that it had blocked the deal. ^[15]

References

1. "2021 Financial Statements". Income. 31 December 2021.}
2. "Unions to map out new strategy to check slide". The Straits Times. 15 November 1969.
3. "The NTUC Social Enterprise Story" (PDF). NTUC. 15 February 2015.
4. "Income's free insurance scheme to cover more families". Channel NewsAsia. 19 March 2014.
5. "Income launches insurance plan for children, young adults with autism". TODAYonline. 15 August 2013.
6. "Income starts insurance policy for Down Syndrome children, youth". TODAYonline. 5 December 2014.
7. Ang, Jolene (28 October 2021). "NTUC Income to expand digital offerings to Indonesia, Vietnam, Malaysia through partnerships". The Straits Times. Retrieved 6 January 2022.
8. Ang, Prisca; Tan, Sue-Ann (17 July 2024). "NTUC Income co-op to convert to a company amid stiffer competition in insurance industry". The Straits Times. SPH Media. Retrieved 26 July 2024.
9. Tang, See Kit (6 January 2022). "NTUC Income co-op to become corporate entity amid 'intensifying headwinds' in insurance sector". CNA. Retrieved 6 January 2022.
10. "NTUC Income Corporatises to Further Strengthen Its Competitiveness for Long-term Growth". NTUC Income. 6 January 2022. Retrieved 6 November 2022.
11. "We are now Income Insurance Limited". Income Insurance Limited. Retrieved 6 November 2022.
12. Tan, Angela (17 July 2024). "Allianz offers to buy at least 51% of Income Insurance at $40.58 a share in cash". The Straits Times. SPH Media. Retrieved 26 July 2024.
13. Huang, Claire (25 July 2024). "Income will continue with affordable insurance after stake sale to Allianz: NTUC Enterprise". Straits Times . Retrieved 21 November 2024.
14. Staff, Petir sg (7 August 2024). "NTUC Income's social mission and low-cost insurance will not change". Petir SG. Retrieved 21 November 2024.
15. Ang, Hwee Min (14 October 2024). "Singapore blocks Income-Allianz deal but leaves door open if concerns over public interest are fully addressed". channelnewsasia.com. Retrieved 19 October 2024.