NTUC Income is a cooperative

Dear Mr. Tan,

NTUC is special; it is a cooperative; it is different from the rest. We have many advantages, there is no need to set aside 10% of the profit for distribution to shareholders.

Cooperatives, after deducting all expenses, the remaining profit can be distributed to POLICYHOLDERS. In the past expenses made of only 2%, the other 98% was distributed. We have an advantage of 10%. In other words we have more to distribute.

If we retain the 10%, we can still distribute high annual bonus. On top of this we have 20% saving on profit on corporate tax. This too serves as advantage over the other company.
Why talk of insolvency and smoothing when NTUC has a lot to spare.

Something is wrong somewhere. Unless expenses have gone up. Where? Pay very high salary to senior managers? (Other references deleted)

Remember NTUC was started to provide affordable insurance to the man in the street; to give low premiun, high protection and good return. What has happened to these cooperative values?

This was the mission. It is not the mission TO BE THE #1 INSURER AT ALL COST. The mission is to make sure all the men in the street are insured adequately and not to be saddled with high commission whole life products. To provide insurance at affordable premium and with decent return on investment. And not with products to enrich the agents at the expense of the customers and to make NTUC #1.