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Gan Kim Yong: $2.6 billion collected in premiums for ElderShield insurance and around $100 million paid out in claims since 2002

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Minister for Health Gan Kim Yong said that from 2002 to end-2015, about $2.6 billion have been collected in premiums for ElderShield insurance and around $100 million have been paid out in claims, adding that about $130 million in premium rebates have been given to policyholders so far, the first tranche in 2007 and another in 2012.
This is is his response to questions filed by NCMP Assoc Prof Daniel Goh Pei Siong who asked the Minister for Health since the inception of ElderShield in 2002 what has been the total ElderShield premiums paid, what is the total surplus collected by the ElderShield insurers, what is the total surplus returned to members as premium rebates, and what is the payout ratio and profit margin of each of the ElderShield insurers.
The Minister stated that ElderShield is an insurance scheme that provides basic protection against the costs of long-term care arising from severe disability in old age.  Premiums for policyholders are collected annually between age 40 and 65. Coverage starts at age 40 and the policyholder is covered for life.
If a policyholder becomes severely disabled before age 65, he will no longer need to pay further premiums and will start to receive monthly ElderShield payouts.
According to the Minister, the oldest ElderShield cohort that enrolled at age 40 in 2002 will be turning 55 this year.  The current age profile of policyholders is relatively young but will get older over time.  As older people are more likely to become severely disabled compared to younger people, ElderShield payouts are expected to increase when the profile of policyholders gets older.
“Indeed, the proportion of claims over premiums collected has been increasing since ElderShield started in 2002, and this trend will continue in the future,” he said.
Mr Gan said that people who are not familiar with how ElderShield works may ask why the current amount of premiums collected is much higher than the amount of claims paid out so far.  Some may even wrongly conclude that policyholders have been paying too much in premiums or that insurers have made excessive profits.
“Allow me to clarify the facts to address these misperceptions,” he said.
The Minister said that there are insurance schemes that provide coverage for the year in which the policyholder pays his premiums – when the policyholder stops paying premiums, the coverage ends.  ElderShield works differently.  It collects premiums while the policyholder is aged 40 to 65, and provides lifetime coverage from age 40, even after the policyholder reaches 65 and stops paying premiums.
Hence, he said that it is prudent for the total amount of premiums collected to exceed the amount of claims paid while our policyholders are still young, because the premiums collected are meant to provide coverage against future claims throughout the policyholder’s lifetime.
As explained earlier, Mr Gan said that the proportion of claims over premiums collected has been increasing since 2002 and this trend can be expected to continue as the profile of policyholders gets older over time.
“If the insurers do not collect enough premiums today and set aside some amounts for future claims, there is a risk that ElderShield will not be able to provide adequate coverage for policyholders as our population ages.  It is important for insurers to ensure that policyholders will not face this situation,” he said.

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Parliament

Minister Shanmugam rejects request for detailed information on visa-free visitor offences: Cites bilateral considerations

Minister for Home Affairs K Shanmugam rejected Workers’ Party MP He Ting Ru’s request for detailed statistics on visa-free visitors involved in crimes, citing bilateral concerns. He affirmed current screening measures are sufficient, with no plans for an electronic travel authorisation system.

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On 10 September 2024, Minister for Home Affairs and Law, Mr K Shanmugam, refused to provide detailed information requested by Workers’ Party Member of Parliament (MP) for Sengkang GRC, Ms He Ting Ru, regarding visa-free visitors involved in criminal offences in Singapore.

Ms He had asked for statistics on how many visa-free visitors had been arrested or identified as persons of interest for criminal activities from 2021 to June 2024, along with a breakdown of offences by type, number, and country of origin.

She also queried the consideration of enhanced screening measures and the possibility of introducing an electronic travel authorisation system similar to those in other jurisdictions.

In his written response, Mr Shanmugam stated that with over 150 countries on the visa-free entry list, it would not be practical or meaningful to publish crime statistics specific to visitors from these nations.

He added that doing so could carry bilateral implications and potentially send the wrong message to bona fide visitors from these countries.

Mr Shanmugam affirmed that Singapore’s Immigration & Checkpoints Authority (ICA) employs a risk-based, multi-layered approach to balance border security with traveller facilitation and assured that the current measures are sufficient. He reiterated that there were no immediate plans to implement an electronic travel authorisation regime, as it would increase inconvenience for visitors.

“We are satisfied with the current measures, and for now, do not see a need for an additional electronic travel authorisation regime. Also, such a regime will make visiting Singapore more inconvenient,” said Mr Shanmugam.

This response followed an oral reply delivered earlier that day by Minister of State (MOS) for Home Affairs, Ms Sun Xueling, who addressed a related question posed by Non-Constituency Member of Parliament (NCMP) Mr Leong Mun Wai from the Progress Singapore Party (PSP).

Mr Leong had expressed concerns about the potential rise in crime following the introduction of a 30-day visa exemption arrangement for Chinese nationals in February 2024. He specifically questioned whether the recent burglaries involving foreign syndicates had any link to this exemption and whether automated lanes at Changi Airport increased the risk of non-bona fide travellers entering the country.

Ms Sun refuted Mr Leong’s concerns, clarifying that there had been no increase in arrests among short-term visitors from China since the visa exemption came into effect.

She noted that the arrest rate of Chinese visitors had, in fact, decreased compared to the previous year. While acknowledging the involvement of some foreign nationals in criminal activity, she highlighted that the visa regime alone cannot eliminate all risks. Instead, ICA employs enhanced technology, such as biometrics and advanced data analytics, to screen travellers.

Ms Sun also emphasised the importance of the tourism sector to Singapore’s economy, generating S$27.2 billion in receipts in 2023 and employing over 71,000 workers. She argued that closing borders to prevent crimes would not be a viable solution, especially given Singapore’s competition with neighbouring countries like Malaysia and Thailand, which are also working to attract Chinese visitors.

Despite further calls from Mr Leong for additional security measures and tougher penalties for cross-border crimes, Ms Sun reassured that the government continually reviews its laws, including the Criminal Procedure Code and Penal Code, to address transnational crimes such as human trafficking, drug trafficking, and online scams.

She affirmed that Singapore remains vigilant in adapting its laws and measures to combat evolving criminal trends.

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Parliament

Leong Mun Wai questions why NTUC leaders often come from the ruling party

During the Platform Workers Bill debate on 10 Sept, Mr Leong Mun Wai, NCMP from the Progress Singapore Party, backed WP MP Gerald Giam’s call for an independent NTUC. He expressed concerns about NTUC’s ties to the ruling party, questioning its independence given that its leaders are often from the PAP.

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SINGAPORE: Mr Leong Mun Wai, Non-Constituency Member of Parliament (NCMP) from the Progress Singapore Party, voiced support for the Workers’ Party and its MP Gerald Giam’s call for an independent and non-partisan NTUC, separate from the ruling People’s Action Party (PAP).

During a parliamentary debate on the Platform Workers Bill on Tuesday (10 Sept), Mr Leong acknowledged that tripartism is a fundamental aspect of governance that all parties, including opposition ones, seek to foster.

He noted that unions naturally seek political power to effect change but expressed concerns about the extent of NTUC’s relationship with the ruling party.

However he questioned the level of NTUC’s independence from the government.

He pointed out that the NTUC’s secretary-general is often a minister or former minister and that many NTUC leaders come from the ruling party.

“Can you find another trade union in the world where the trade union chief is a minister? Are there any countries? Please let me know if there are,” Mr Leong asked, further noting that few opposition politicians are given appointments in NTUC.

“I think we are entitled to think that the independence of NTUC ought to be better than this.”

Earlier, PAP MP Christopher De Souza criticized MP Gerald Giam for using the term “tether” to describe the NTUC-PAP relationship, emphasizing that the NTUC operates through partnership, alliance, and solidarity rather than subordination.

In response, Mr Giam clarified that when he used the terms “tether” or “untether,” he meant that the NTUC and the PAP should be separate and independent organizations.

He sought to ensure that NTUC does not appear to be biased towards the ruling party.

Mr Giam also raised concerns about NTUC’s structure, particularly questioning why the Platform Associations need a Council of Advisors with the power to dismiss the Executive Council and why these advisors are predominantly PAP members or MPs.

He suggested that this structure indicates a lack of independence for NTUC.

The current NTUC secretary-general is Ng Chee Meng, a former PAP minister who assumed the position in 2018 and continues to hold it despite losing to WP’s new team in GE2020.

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