Income-Allianz deal raises concerns among public, experts; former CEO calls it a ‘breach of good faith’

” Over day, the new individual’s focus may shift from cultural good to benefit maximisation”, said Associate Professor&nbsp, Shinichi Kamiya, a lieutenant director at Nanyang Technological University’s (NTU) Insurance Risk and Finance Research Centre.

The proposed merger, however, may also aid Income Insurance in staying competitive and expanding its insurance, they said.

” Contrary to public concerns about higher premiums and reduced admittance to policies, Allianz is likely to sustain Income’s value proposition of providing available, complete, and affordable insurance solutions to retain its dominant position in Singapore”, said Dr Kamiya. &nbsp,

The researchers ‘ comments came after ambassador-at-large Tommy Koh and Mr Tan spoke up formally about Allianz’s plan to acquire a majority interest in Income Insurance.

Last year, Allianz announced that it would give S$ 40.58 per share for 51 per share of stock in Income Insurance. The entire transaction benefit would be S$ 2.2 billion.

The package is pending regulatory approval.

Professor Koh stated on Instagram on Tuesday that income coverage should not be sold.

“( Income Insurance ) started life as a co-operative of NTUC like FairPrice. He said,” The idea was to provide coverage to the people at reasonable costs,” noting that it became a commercial entity a few years ago.

” We are then informed that it may be sold to a European plan company.” I do n’t think it’s a good idea to sell ( Income Insurance ).

It was established to fulfill both a cultural needed and a cultural purpose. They remain true now. I wish to argue that ( Income Insurance ) and FairPrice should never be sold, “he said.

Mr Tan, who is also original party CEO of NTUC Enterprise, referred to a remark by Allianz CEO&nbsp, Oliver Bate, who said that the company is” nervous about things that look great from a volume perspective and not so excellent from a value perspective.”

He said NTUC Income’s values used to be” diametrically opposite”.

We wanted to have as much of a reach as possible for Singaporeans ( the top line ), not just to increase profits but also to increase social impact, he said.

Allianz stated in a press release last week that it intends for Income Insurance to continue participating in national insurance programs and to keep its social commitment to promote social mobility.

Member of Parliament Liang Eng Hwa ( PAP-Bukit Panjang ), chairperson of the&nbsp, Government Parliamentary Committee for Finance and Trade and Industry, told CNA that he has filed a parliamentary question on Allianz’s plan.

He stated that he would inquire about the sale of Income Insurance to a foreign company, and that his main concern is insurance’s affordability and accessibility, particularly for the general public.