How to Choose an Insurance Broker in Singapore

Choosing an insurance intermediary in Singapore comes down to three checks: confirm they are licensed or authorised by the Monetary Authority of Singapore for the business they are doing, understand whose interests they represent — a broker generally acts for you and can approach multiple insurers, an agent represents the insurer or insurers they are appointed by, and a direct insurer sells only its own products — and get clarity on how they are paid before you take advice. All three channels are legitimate and regulated; the right one depends on how complex your risk is and how much of the market you want approached on your behalf.

Broker, agent, direct insurer: what actually differs

None of these is inherently better. A single-shop retailer buying public liability may be perfectly served by an agent or a direct purchase. A contractor juggling a subcontract's named limits, contractors' all-risks, WICA and a landlord's indemnity clause usually benefits from someone who can place several covers with several insurers and read the contract wording alongside them.

How to verify a licence with MAS

Everyone who advises on or arranges general insurance in Singapore should sit inside MAS's regulatory perimeter — as a licensed insurance broker, a licensed insurer, a financial adviser, or a registered representative of one of those. MAS maintains public registers you can search, and the check takes a couple of minutes.

1. Go to MAS's own website and find its public register of financial institutions and its register of representatives. Use the site's own search rather than a link someone sends you.
2. Search the firm name exactly as it appears on the proposal, quotation or email footer — not the trading name on the business card, which may differ.
3. Check what the entity is licensed or authorised to do. An entity may be listed for one type of business and not another; general insurance broking is not the same permission as life advisory.
4. Search the individual as well as the firm. Representatives are listed separately from the institutions they act for.
5. Look for regulatory action or lapsed status. If the listing does not match what you were told, ask before proceeding.

If you cannot find them at all, stop and ask for their licence details in writing. A legitimate intermediary will supply them without friction. If you are unsure how to interpret what you find, MAS is the authority to ask — do not rely on a summary from the person selling you the policy.

Commission, fees and why it's fair to ask

Almost all SME general insurance in Singapore is distributed on commission paid by the insurer out of the premium. That is normal and does not make advice bad — but it does mean the intermediary's income varies with what you buy, and you are entitled to understand that.

• Ask how they are remunerated on this placement — commission, a fee agreed with you, or a mix. A professional will answer plainly.
• Ask whether the commission rate differs between the options presented. If two policies are close on merit, this is useful context.
• Watch for fee stacking. Some brokers charge a broking or policy fee in addition to commission. That can be entirely reasonable for complex work — it just should not be a surprise on the invoice.
• Compare on total cost of risk, not premium alone. A cheaper premium with a much higher excess, narrower cover or a restrictive condition is not cheaper.

The useful signal is not whether commission exists. It is whether the person will discuss it openly and can justify why the recommended policy beats the alternatives on cover, not just on price.

Questions worth asking before you commit

A short list that reliably separates a considered placement from an order-taker:

1. How many insurers did you approach for this, and which declined? Declines are informative — they tell you how the market sees your risk.
2. Which contract requirements did you read? If your lease or subcontract names a limit or an indemnity, ask them to confirm the policy meets it in writing.
3. What are the three exclusions most likely to bite my business? Anyone who cannot name them has not read the wording for your trade.
4. Is this occurrence-based or claims-made? It changes what happens if you switch insurers or wind down. Professional indemnity is usually claims-made, which makes continuity and retroactive dates important.
5. What do I have to tell you during the year? Headcount changes, new activities, new premises and new contracts often need to be declared — non-disclosure is a common cause of declined claims.
6. Who handles a claim, and what do you do if the insurer disputes it? Ask for their process, not a reassurance.
7. What happens at renewal — do you remarket, or roll over? Both are defensible; you should know which you're getting.

Practical signals of a good fit

Beyond licensing, the things that tend to matter for an SME:

• They know your trade. An intermediary who regularly places F&B, construction or clinic risks will anticipate the exclusions and the underwriting questions.
• They ask more than they pitch. Headcount, wage roll, contract wordings, stock values, subcontractor use, overseas work. Thin questions produce thin cover.
• They put recommendations in writing. A short summary of what was recommended and why is valuable if a claim is ever disputed.
• They flag what you don't need. Willingness to say a cover is unnecessary for your business is a better indicator than breadth of product list.
• They handle the compliance paperwork. Certificates naming a landlord, proof of WICA cover for a main contractor, certificates of currency for a tender — the admin is a real part of the service.

Whichever channel you use, keep the decision documented. Insurance disputes are usually about what was known and disclosed at the time, and a paper trail is worth more than a recollection.

Frequently asked questions

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