EXTRACTS FROM STATEMENT BY
NICK RHODES, APPOINTED ACTUARY OF INCOME, 2002-2007
Income, as a Cooperative, distributes less to shareholders .... so a variable and high annual bonus can be paid, to the benefit of policyholders.
Income has managed to maintain remarkable stability in its non-guaranteed Terminal Bonus over the years - not even reducing it when STI was down at 1,300.
As a result, in my opinion, the Income bonus philosophy was much better than that adopted by competitors, since the policyholder could predict with greater certainty the value of his policy as it approached maturity.
Other companies have an inferior product - and it would be unfair to policyholders for Income to unnecessarily follow "market norms".
I agree that Income, as a Cooperative, should be able to distribute more benefits to policy holders than other insurance companies. It should distinguish itself from others and not merely follow market/industry norm. Otherwise, what is the point of insuring with Income?
ReplyDeleteWhat happened to this actuary (2002-2007)? Left for greener pastures or Income just wanted a new actuary?
ReplyDeletehongjun