Restructuring of bonus

Someone posted in my blog that the restructuring of the bonus rates is sound actuarial practice. He (she) even suggested that this is what I would have done, if I were in charge of NTUC Income.

I have to disappoint this person. In my view, the restructuring of the bonus is unfair and is detrimental to the interest of policyholders. It contravenes their "reasonable expectation".

There is no need to restructure the bonus, unless the solvency is at threat. This is not the case, coming from a year of high investment yield. If this is the real reason (and I doubt it), then it should be stated openly and the cut in bonus should apply to all policies.

I do not like a large part of my policies' bonuses to be unvested, as it can be taken away at any time. I do not like the manner in which this restructuring has been done.