SG ecommerce firms enter insurance amid tighter regulations

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Shopee is moving beyond retail into insurance distribution on its platform.

The offerings include a pet insurance product recently rolled out with MSIG Insurance and Sea’s digital financial services arm, Monee.

It’s one example of a financial institution partnering with an ecommerce platform to reach consumers, which has become more common in Singapore.

But as online marketplaces play a bigger role in insurance distribution, questions around governance and oversight are coming into focus.

A Monetary Authority of Singapore (MAS) spokesperson told The Business Times that financial institutions “may distribute their products and services through various channels, such as agents and … the use of digital media.”

Last September, MAS published a set of guidelines on standards of conduct for the digital advertising activities of financial institutions.

“Encouraging response”

MSIG and Monee said Shopee’s 12.12 campaign generated an “encouraging response” for the new pet insurance product, but they did not give details.

The offering includes one month of free coverage, with the plan covering up to S$100 (US$77.8) for outpatient and inpatient treatment resulting from accidental injury. Plans are available for as low as US$0.16 a day.

Steven Leong, head of retail distribution at MSIG Singapore, noted that the new offering reinforces the firm’s commitment to making insurance “accessible and part of everyday life.”

The pet insurance product is distributed by MoneeInsure Agency on Shopee Singapore and underwritten by MSIG Insurance.

Photo credit: Tang Yan Song / Shutterstock

MSIG said Shopee itself functions only as a marketplace, and the insurance page on the platform is owned and operated by MoneeInsure Agency.

Not a new phenomenon

Upholding professionalism