Tan Kin Lian's Blog: Extract from speech by Income's chairman

Thursday, June 05, 2008

Extract from speech by Income's chairman

Extract from the speech by chairman of Income, made at the annual general meeting on 30 June 2008:

Some policyholders have raised specific concerns on the special bonus in blogs. Allow me to address them.

> While special bonuses are not guaranteed, they are designed to ensure that the reduction in annual bonus is compensated. As I have indicated earlier, the new bonus structure is aimed at improving, the total payout to policyholders.

> Should the special bonus in future reduce due to adverse financial conditions, we are committed to restoring it when conditions improve.

> I have stated that this Board will look after the policyholders’ interests. Towards this end, the Board will ensure that the bonus allocated to policyholders result in payouts is fair and consistent with the experience of the Life Fund.

5 comments:

zhummmeng said...: Mr.Tan, there are still so many who are not happy with restructuring. What do you think? Should we bring them down on their knees by terminating our policies?
They are adopting the delaying tactics to see who can hold out and hope that everyone will forget. They can make promises to study further but they are just wasting our time.We know what the answers will be.
http://forum.channelnewsasia.com/viewtopic.php?t=152631&highlight=ntuc; June 05, 2008 9:48 AM
TanCS said...: Mr Tan
Since the annual bonus will be much reduced and only compensated by special bonuses when you surrender the policy or when the policy matures, am I right to say that the timing for surrendering and maturing of the policy are very important. You will be worst off during adverse financial conditions. By the way, the AGM was held on 30 May 2008.; June 05, 2008 10:03 AM
zhummmeng said...: Honestly, Mr. Tan if you are in charge and tell us that you would restore the bonus, we believe you. Your track record attests. But not the new one, with all the splurging on new equipment and reno,
dubious products , incentivize the agents with high commission and meeting at posh places, there is no frugality.It is too much squandering. Look at the Equitable Life case , the annual bonus never declared and special bonus squandered and that was following industry best practice.
But we are scared scared about this reshape , it may get out of shape.
If you say this , we trust you.; June 05, 2008 1:12 PM
Larry Haverkamp said...: Hello --

I note this part from the Chairman's speech:

"Should the special bonus in future reduce due to adverse financial conditions, we are committed to restoring it when conditions improve."

That is good to know. But if that is the policy, why not do it for the annual bonus? It was cut in 2003 because of adverse financial circumstances.

Since then, the company has done well, with returns averaging 7.8 per cent over the last 10 years.

So, why not put those words into practice: "...we are committed to restoring it when conditions improve."

Conditions have improved. Where is the restored bonus?

Sincerely,

Larry Haverkamp; June 05, 2008 1:15 PM
Monsoon said...: Dear Mr Tan - I am amazed at the general apathy which is a common traits of Singaporean. This is why company such as INCOME can blantantly cut the annual bonus. I am surprised that only a small number of affected policy holders see it fit to register their protests with you. If you have not taken the lead, as probably has been the case in other situation in Singapore where no one dare or are clever enough to stand up, the bonus cut would have been implemented successfully to the allegedly "benefit" of the policy holders.

Even with you taking the lead, I think the management has not responded with immediate change as is needed or acknowledge the concern of the policy holders, instead they still insist cutting the annual bonus is beneficial to the policy holders. The management with the support of the board has conceded nothing. Most likely, they will succeed in achieving their objectives. They can perhaps even assume that the majority of the policy holders are happy with the cut in annual bonus?; June 05, 2008 10:15 PM