Non Guaranteed Benefits

Dear Mr Tan

Is there any governing body that will monitor how far insurance companies depart, historically, from the "non-guaranteed" bonus payouts?

If I were to establish an insurance company, the first thing I would do is to inflate the "non-guaranteed" values hugely, it is sure-draw and attract the gullible.

There is nothing to lose, after all I just say they are "projected" "nonguaranteed", these kind of stuffs should be made illegal, how can you sell something on such basis.

MY REPLY:

You can refer this question to the regulatory authority, that is, the Monetary Authority of Singapore.

It is important that the insurance company exercise fairness in giving out the non-guaranteed benefits. The appointed actuary is required to look after this matter.