FWD Insurance has recently invested in IPL Financial Consultants, taking a significant stake in this prestigious financial consultancies firm which has strong international presence in Singapore and Hong Kong. However, the financial terms of the agreement were not disclosed. In an official statement, IPLFA stated that the agreement will allow it to solidify its position as a leading financial consultancies firm in Singapore and other parts of the Asia-Pacific region, with the help of this acquisition. The investment was made through FWD Singapore Limited, a Hong Kong-based private company controlled by Tan Kuek, FWD’s former Managing Partner. This is the second major alliance for both companies in recent years.
Earlier in March, FWD Insurance paid a $50 million cash transaction to purchase a 50-percent share in an Indonesian life insurance company from CMM Group. The transaction was completed just before the end of last year. This company also acquired a 50-percent share in a New Zealand life insurance company from Infrastructure Investments Ltd (info). CMM Group is now a part of FWD.
The combined FWD and CMM Insurance will be able to serve a large number of clients in a much wider geographical area, which according to experts in the field can only be good news for the clients and their families. Tan Kuek had told analysts and bankers earlier that the merger would strengthen the company’s ability to compete with the rapidly growing life insurance market in Indonesia and in Asia in general. “IPL remains a fast-growing company in Indonesia and our combined entity will have access to markets beyond our scope in Indonesia and around the world,” he had said. He further explained that the company would continue to operate independently and that it would not be absorbed by any company or organization. As such, Tan Kuek is looking forward to strengthening the partnership with CMM Group, as well as with other insurance companies that operate in Indonesia.
Like Singapore, Hong Kong has its own fair share of life insurance companies, both the local and the international ones. But unlike Singapore, there are no significant differences between HGI and CMC Group, despite the fact that both of them offer life insurance cover in different forms. H GI is a wholly owned subsidiary of CMC Group and its financial planning and product range tend to be more uniform than those offered by the latter company.
Like Singapore, Hong Kong also has a well-developed national health system. The medical facilities in this part of the world are highly efficient and have created an environment that encourages the population to remain healthy. Life insurance in Hong Kong follows a simple yet effective structure, with monthly premiums and single payment terminals. There are also no age restrictions and anyone can apply for a policy. Unlike Singapore, there are no income restrictions on applying for life insurance and anyone who have sufficient income to support himself and his dependents can buy a policy.
It is evident from the above discussion that FWD Life Insurance has an edge over other companies in Singapore that offers a similar type of plan. Despite the absence of income or age restrictions, it offers a cheaper option compared to other direct-term plans. While premiums are slightly higher in terms of other direct-term policies, the terminal illness clause offered by FWD Life Insurance Company is something that sets it apart from the rest. In addition, there are a lot of policies available at a relatively low price when compared to the premiums charged by direct-term policies.