FWD Group is exiting its group medical insurance business in Singapore, which could affect around 80,000 members across various companies.
The insurance arm of Hong Kong's investment conglomerate Pacific Century Group said it will wind down its employee benefits business in Singapore, key of which is group medical insurance, by December 2020, a company spokesman told local news outlet The Business Times.
As a result, FWD Singapore will no longer sign new contracts for the business, and will no longer renew any expiring contracts, the report said, quoting a spokesperson from FWD. The spokesperson also said that affected clients had already been informed about the impending closure as of last month.
FWD Singapore has made a business decision to focus on and allocate more investment and resources to other lines of business that support stronger future growth in the market"
"FWD Singapore has made a business decision to focus on and allocate more investment and resources to other lines of business that support stronger future growth in the market," the spokesperson said.
FWD's spokesman added the firm will focus on its direct-to-consumer business, providing life and general insurance products. These include car, travel, maid, home and term life insurance.
FWD is controlled by Richard Li, the entrepreneur and son of Hong Kong's richest man Li Ka-shing.
It is believed to be the fifth-largest group medical insurer in Singapore. The insurer had started off here in April 2016 providing employee benefits insurance to corporate customers.
FWD sets itself apart from competitors by doing away with agents and commissions, instead leveraging technology to reduce complexity and facilitate applications and claims. However, FWD is still a relatively small player in the region compared with giants such as AIA and Prudential.
Its website states that it has 5.5 million customers and $33.8bn in assets, compared with $256bn for AIA.