The decision does not have any impact on Zurich’s existing customer policies in Singapore and only affects the life business. The company said it remains committed to the general insurance market in the city state.
“Our decision to no longer accept new life policy applications in Singapore did not come lightly, but is a necessary action as part of prioritising investment where we can compete to win and establish a distinctive position,” said Colin Morgan, chief executive of Zurich’s life business in Asia Pacific.
“We spent a long time exploring the different options, but this unfortunately was the most feasible and practical under the current and foreseeable circumstances,” he said in a statement.
Corporate restructure
Zurich said its latest decision to withdraw from the life business in Singapore was part of a strategy aimed at re-focusing its resources on the markets and customer segments where it has a real competitive advantage.
Zurich Insurance Group announced at the end of September that it was handing over its entire approximately 160-strong tied agency network in Singapore to the Nexus Group from the Middle East in response to the changes in the regulatory landscape.
It has also recently moved Walter Jopp, its former head of market management for Global Life Asia Pacific, to Dubai to take up a similar role for the Middle East and Africa.
Two weeks ago Zurich Life Insurance in Hong Kong announced the departure of Andy Robinson, chief propositions officer, after 15 years of service in senior positions with the company.
Zurich’s move also reflects a wider restructuring with the life insurance industry. In June Standard Life closed its insurance operation in Singapore, citing its decision to focus more on building business with Chinese and Indian partners in Hong Kong.
General insurance focus
It plans to retain a core group of people to oversee the transition, as well as an ongoing dedicated support team to service all existing customers. Zurich said it would do what it can to redeploy affected employees within the organisation.
The company said Singapore remained a key regional hub for Zurich’s General Insurance (Global Corporate) offering, and would continue to invest in this business to strengthen its proposition to both Singapore domestic and international corporations in Asia Pacific.
Zurich Insurance Group is a leading multi-line insurer that serves its customers in global and local markets. With more than 55,000 employees, it provides a wide range of general insurance and life insurance products and services.
