FWD Singapore (FWD) launched its first participating fund to mark FWD Group’s 10th anniversary celebration. This is in line with its strategic evolution to become an integrated omnichannel insurer offering life and general insurance products with a stronger push on savings plans with capital protection.
This move demonstrates the company’s dedication to providing customers with innovative solutions that meet their evolving financial needs.
Adrian Vincent, CEO of FWD Singapore said, “FWD began as a digital insurer making online insurance more accessible, convenient and affordable to Singaporeans. Now FWD is an omnichannel insurer with established direct-to-consumer and financial advisory channels. As we celebrate our Group’s 10th anniversary, we also embark on the next phase of growth for our Singapore business. We’re committed to maintaining the same drive and innovative spirit. The setting up of our participating fund reflects our ambition to deliver best-in-class solutions to enable our customers to achieve greater financial security for themselves and their families”.
With the newly launched participating fund, FWD can formulate its investment and product strategy without legacy limitations, including leveraging the current higher interest rate environment for higher potential returns. This is in line with FWD’s overall strategy to develop more innovative participating products in the future and provide financial protection and growth to more Singapore residents.
FWD’s new participating fund builds on the experiences of similar funds launched in the Hong Kong and Thailand markets. Its specialised participating fund team comprises of talents with insurance and participating funds management experience. The insurer also engaged with a best-in-class asset manager who understands and is aligned with FWD’s innovative spirit in finding breakthrough solutions to ensure customers’ financial well-being.
The participating fund will be managed by PineBridge Investments, a private global asset manager focused on active and high-conviction investing. PineBridge currently has $143.1 billion of assets under management and will be managing FWD’s participating fund according to its strategic allocations into fixed income, growth assets and cash.
Nicolas Kopitsis, managing director, and head of Intermediary Distribution Asia of PineBridge Investments said, “At PineBridge, we understand the importance of providing investment solutions that meet the evolving needs of our clients. By collaborating with FWD, we can offer investors a solution that balances risk and return while delivering strong investment performance. We are excited to work together with FWD to help investors achieve their investment goals”.
Accessing FWD participating fund through the newly launched FWD Life Income Singapore, like the rest of the world, continues to see inflationary pressures due to supply chain disruption and volatile, uncertain capital markets, while rising interest rates also impact the value of some financial products such as bonds.
The first product with access to FWD’s participating fund is the newly launched FWD Life Income plan. The product is designed to provide continuous passive income and help future generations mitigate the impact of inflation, while building a steady stream of returns for wealth accumulation. The participating fund through FWD Life Income is the first of several solutions FWD will launch to help Singapore residents to grow wealth, not just for themselves, but for their next generation as well.
FWD Life Income provides:
● Early Guaranteed Special Benefit: Policy owners will receive a first-in-market one-time Guaranteed Special Benefit payout, valued at 6% of the policy’s sum insured, at the 25th policy month. This means a shorter waiting time for the first payout.
● Passive income payouts: After just three years, policy owners will start receiving regular cash benefits made up of guaranteed and non-guaranteed components. This means customers’ future generations can continue to enjoy this passive income stream, even when the original policy owner passes on, provided that a second person insured has been appointed. This will only stop when the plan matures, is terminated or if a claim is paid.
● Change of person insured: Policy owners have the flexibility to change the person insured to their child while continuing to receive the cash benefits.
● Change of policy ownership: Policy owners can assign policy ownership to their child when the child is 18 years old or older so that the child can receive cash benefits.
● Flexible payment terms: Policy owners may choose from three different premium payment terms, single premium, 5-year regular premium, or 10-year regular premium.
● Financial protection for terminal illnesses or death: The policy pays a lump sum in the event of terminal illness or death of the person insured. The person insured can also be changed to protect the policy owner’s spouse or child.
FWD Life Income adds to FWD’s growing suite of innovative insurance products, which includes the Invest First Plus investment-linked plan that helps customers get more out of their investment with transparent and fixed total charges and Recover First critical illness protection plan that covers customers beyond a defined list of critical illnesses. With this, the company aims to offer valuable benefits and long-term security.
Re-disseminated by The Asian Banker