According to Income, the Singapore insurance market has undergone significant shifts. These include a mature domestic market, evolving regulatory expectations and requirements, as well as increased competition from insurers with extensive distribution scale and access to growth channels and markets locally and regionally.
In response to these market shifts, Income said that it is transforming into a corporation to “achieve operational flexibility and gain access to strategic growth options to compete on an equal footing with other insurers locally and regionally.”
This builds on Income’s recent forays into the neighbouring markets of Malaysia, Indonesia and Vietnam, where it partnered with players in the insurance, broker and insurtech arenas to harness the insurance-as-a-service model.
“We see corporatisation as a strategic and essential pivot for Income to scale its business quicker locally and regionally, invest in growth channels and markets, as well as digital capabilities to effectively compete more equitably with other insurers,” said Ronald Ong (pictured above right), chairman of Income. “More significantly, we will be even more responsive to changing customer needs via insurance solutions that speak to today’s digital-first lifestyles and customers.”
Income said that corporatisation will only change its legal form and will not affect its contracts with policyholders, distribution channels and business partners. There will be no change to its organisational structure and business operation following the corporatisation exercise, except that the company will take the place of the co-op. Members who own co-op shares will hold the same number of company shares post corporatisation.
“We are heartened by the strong support and trust that our distribution channels, partners and business associates have given to Income for the past 52 years,” said Andrew Yeo (pictured above left), chief executive of Income. “We look forward to embarking on this new chapter with all our stakeholders and bringing Income to new heights. As with all important business initiatives, we will work closely with stakeholders to ensure a smooth transition and execution of the corporatisation exercise.”