E-commerce platforms selling insurance products should also hold a duty of care: Opinion

I refer to the article titled “E-commerce platforms such as Shopee expand into insurance amid tighter regulatory scrutiny” (Jan 12, 2026).

E-commerce platforms acting as “marketplaces” for insurance products – whether it is pet, health, life, accident, or property insurance – are effectively functioning as agents and should be held to the same rigorous standards.

The insurance industry is heavily regulated, similar to real estate, with specific licensing requirements, consumer protection laws and anti-money laundering protocols.

Since customers buy policies directly from the e-commerce platforms, these platforms should hold a duty of care to customers and should not simply push customers to contact the insurers if there are disputes.

If customers pay e-commerce platforms, and the platforms take a commission, the onus of service should also extend to the platforms.

Unlike selling commercial inventories with straightforward buy-and-sell mechanics, insurance businesses need to navigate and comply with stringent financial services regulations. What about these platforms that collect sales on behalf of insurers?

More jarring is the vast amount of sensitive customer data that e-commerce platforms might store, which makes them prime targets for cyberattacks. Selling insurance on behalf of insurers could require handling even more sensitive personal and health information, increasing the risk of a potential data breach.

There is also the potential for data misuse, specifically, the risk of using shopping data to influence insurance pricing. What additional safeguards are the insurers and platforms implementing to ensure customer protection? E-commerce platforms cannot simply act as passive intermediaries; insurance products are not as simple as everyday gadgets.

Francis Cheng

Source: The Business Times © SPH Media Limited. Permission required for reproduction.

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