A study of the educational policy in the insurance industry
Date of Issue1992
College of Business (Nanyang Business School)
The study of the educational policy in the local insurance market consists of two parts. Part One of the report commences with an overview of the education system in Singapore which is anticipated to move towards the system of decentralisation of school management. This new style of school management with concomitant high costs inevitably lead to higher school fees. Coupled with the frequent fee hikes especially in the tertiary fees, the financial concern over educational pursuits for future generations is aroused. In view of the financial concern, the study reviews the adequacy and effectiveness of the various schemes presently made available by the government to alleviate or meet the rising education costs. By virtue of the fact that the stringent requisites attached to such schemes disqualify many applicants and that the uncertainties of life may disrupt or erode any funds planned for future use, the insurance industry introduces the educational policy that appears to solve such setbacks. As a result, the study of educational policy in the insurance market is conducted to justify the effectiveness of the educational plan in overcoming these setbacks.The attempt to find out the effectiveness of the policy was carried out via a survey of the general public and personal interviews with insurance professionals. The findings of the study is then analysed and divided into sections, an endeavor to provide easy understanding and reading. The findings show 'peace of mind' as the most important factor in the buying decision followed by the factor of 'form of forced saving'. It also identifies 'no excess disposable income' and 'high premium' as factors in deterring the respondents from buying an educational plan. Part Two reviews the common features of the educational plan in the local insurance industry. The review aims to create an awareness of the educational policy and to provide a better understanding of such plans. Furthermore, it highlights some of the advantages of this plan. This would certainly be useful in deciding whether to buy an educational policy.
Final Year Project (FYP)
Nanyang Technological University