NTUC pledges to hold Income to commitment of keeping two existing low-cost insurance schemes affordable

SINGAPORE: Income has assured the National Trades Union Congress (NTUC) that it will continue to keep premiums affordable for two of its low-cost insurance schemes in the wake of a proposed deal between Income and Allianz.
In a statement issued by NTUC on Monday (Aug 5), the labour union said it will “ensure that Income upholds this commitment”.
The two insurance schemes, which are open to NTUC members, are NTUC GIFT and Income Insurance LUV.
In a media statement on Monday, NTUC president K Thanaletchimi and NTUC Secretary-General Ng Chee Meng said NTUC remains deeply committed to its social mission.
“NTUC Enterprise will continue to retain a substantial stake in Income,” they said.
“Allianz has also committed to honouring Income’s existing policies, participating in national insurance programmes, and continuing its charity commitments, including the pledge of S$100 million over 10 years from 2021 to promote social mobility among the lower-income and support the well-being of seniors,” they added.
Speaking about the concerns shared by many about the proposed Income deal with Allianz, Mr Ng said that he fully appreciates and understands them.
“NTUC Enterprise has already put in significant amounts of money, into Income over the years, and will continue to support Income. 
But NTUC Enterprise cannot do this on its own,” he said.
Ms Thanaletchimi and Mr Ng said this was why Income was corporatised in 2022 so that it could have more options to access capital.
It was a “hard decision”, they added, but “Allianz’s credentials proved to be strongest, with the interests on both sides aligned”.
“In this fiercely competitive environment, it became plain that Income can only continue to fulfil its social mission if it has access to additional resources and the ability to scale.”
Ms Thanaletchimi and Mr Ng said that Income’s portfolio of enterprises will continue to provide affordable and quality essential goods and services to Singaporeans.
The portfolio will also continue to provide choices to customers within the competitive marketplaces in which they operate. 
“We will continue to work tirelessly, with compassion and dedication, so all our workers can have better lives and livelihoods. That is our unwavering pledge,” said Ms Thanaletchimi and Mr Ng.
The issue has been in the spotlight after Allianz announced on Jul 17 that it was planning to buy a 51 per cent stake in Income Insurance for about US$1.6 billion.
The deal is pending regulatory approval.
The Singapore insurer was set up by the labour movement as a co-operative in 1970 – when it was known as NTUC Income Insurance Co-operative – to provide affordable insurance to under-served workers. It became a corporate entity in 2022.
At the forefront of objections to the Allianz deal is former NTUC Income CEO Tan Suee Chieh, who argued that the proposed sale was a “breach of good faith”. He noted that when there were concerns about corporatisation in 2022, NTUC Enterprise had given the assurance that it would remain as a majority shareholder.
He also said in an open letter to the chairman of the Monetary Authority of Singapore that the sale would “fundamentally erode” the social mission of NTUC Income.
In a joint statement on Aug 4, two days after the open letter, NTUC Enterprise and Income Insurance said Mr Tan had “cast aspersions on the stakeholders in relation to this proposed transaction”.
“These aspersions are not well-founded and, indeed, unfair. It is important that we set out the context and full facts accurately,” they added.
Several Members of Parliament have raised questions about the Income-Allianz deal, which will be discussed when parliament sits on Tuesday.