Bonus on participating policyholders

During the past two years, many insurance companies had cut their bonus due to the global financial crisis. Although the investment markets had largely recoverd, these companies had still not restored their bonus. This has badly affected the policyholders whose policies had matured recently. They received payouts that are far less than what was originally projected, and less than what had actually been earned on their premiums.

I hope that the regulator (MAS) will look into this matter and ensure that policyholders of matured policies receive a fair payout, that reflect the investment return that has been earned on their premiums over the past years. The payout should not be reduced by the surplus that is retained in the insurance fund to fund the marketing expenses of the insurance companies, made at the expense of the maturing policyholders.

Tan Kin Lian