SINGAPORE: Former NTUC Income chief Tan Kin Lian has expressed disappointment over Allianz’s plans to acquire a majority stake in Income Insurance, after the foreign insurance conglomerate made a S$2.2 billion offer for a 51% stake in the company that started out as a social enterprise dedicated to serving all Singaporeans.
Income Insurance Limited, commonly known as Income, is a composite insurer in Singapore, providing life, health, and general insurance. Originally founded as NTUC Income Insurance Co-operative Limited, the company transitioned to a public non-listed entity named Income Insurance Limited in September 2022.
Despite the rebranding, Income has maintained its commitment to affordable insurance, a principle that dates back to its establishment in 1970.
The co-operative model of Income has its roots in the Modernisation Seminar of 1969. At this seminar, delegates from NTUC affiliated unions addressed the challenges faced by Singaporean workers, primarily blue-collar and low-income earners. Inspired by the vision of NTUC founding leader Devan Nair and supported by then Finance Minister Goh Keng Swee, NTUC co-operatives or Social Enterprises, including Income, were created to serve the needs of the working population.
Income began with the goal of making life insurance accessible to all, a significant challenge at the time when such protection was a luxury only the wealthy could afford. Over the decades, it has grown to serve millions of customers, and in 2010, launched the Income Family Micro-Insurance and Savings Scheme (IFMISS) to support low-income households with young children.
While Allianz assured that NTUC Enterprise Co-operative Ltd would retain a substantial stake in Income Insurance, some Singaporeans have expressed surprise and concern.
Pointing to Income’s promise that it would continue catering to underserved customer segments when it was corporatised in 2022, critics have questioned whether the acquisition by a foreign entity will impact the company’s foundational values.
A sizeable group online are asking where the money from the potential sale going to exactly and how it will help Singaporeans. Some expressed fear that the acquisition by a foreign conglomerate could lead to a decline in the company’s product offerings, while others decried the sale of an entity that began as a social enterprise to a “profit seeker”
Mr Tan, who led NTUC Income for 30 years, has added his voice to the chorus of criticism. Responding to a question about whether the company’s “noble socialist philosophy has lost its roots,” the two-time former presidential candidate said:
“This is sad. But it reflects what has been happening in Singapore for the past three decades. We are following the bad practices of America. America is now in decay. Singapore may follow.”
Mr Tan’s tenure as general manager of NTUC Income began in 1977, and he was later re-designated as chief executive officer until April 2007. Under his leadership, the company’s assets surged from S$28 million in 1977 to over S$17 billion in 2007, and policyholders grew to more than one million.
NTUC Enterprise’s chief executive officer Adeline Sum, meanwhile, said: “We intend for Income Insurance to continue to be an important financially profitable and socially responsible business, in line with its enduring purpose of empowering financial well-being for all, which strongly aligns with Allianz’s values.”
As the debate continues, the future of Income Insurance’s mission and operations hangs in the balance, leaving many Singaporeans pondering the implications of this significant corporate shift.
TISG/
