Tan Kin Lian's Blog: Disclose the Asset Share of the Policy

Wednesday, July 02, 2008

Disclose the Asset Share of the Policy

A COMMENT POSTED IN MY BLOG

Hi --

NTUC Income says, "We don't have the money to pay higher bonuses."

Mr. Tan says, "Based on your high stated yield, it sure looks like you do."

How to know for sure?

As Mr. Tan has pointed out before, it is easy. Simply disclose NTUC Income policyholder fund's "asset share" (for each of its policyholders), as required in other countries like Malaysia, Australia, UK and South Africa.

That would give us the answer. At the moment, there is no way for policyholders to know if NTUC Income is holding back on bonus payments or not.

NTUC Income says it is not -- but declines to provide documentation.

Why? Why not reveal each policyholders' asset share? It is easy to do. There is adequate precedent in other countries for doing it. Everyone agrees it would increase transparency of the policyholders' fund.

Those are rather good reasons for disclosure.

Perhaps NTUC Income can state its reasons for non-disclosure.

Sincerely,

Larry Haverkamp

6 comments:

siewkhim said...: Maybe NTUC Income is not familar with the computation and the various consideration that should be taken into account to derive at the asset share per policyholder.

Show me I am wrong. Come on.; July 02, 2008 5:16 PM
Thomas Phua's Blog said...: Did other insurer like GE, Prudential, AIA also declares such asset shares?; July 02, 2008 5:50 PM
zhummmeng said...: So, NTUC is becoming like GE, AIA, PRu, no need to declare anything. No wonder the new management was so eager to adopt the industry practice so it can have free play play with the life fund. Bad year this year,eh? I wonder how much losses the life fund kena.
Also heard that the single premium market share is so bad that any straw also grab now. It is launching a one year capital Plus paying 2% gauranteed to dress up the bottom line.Wow!, what desperadoes they have become. Wonder how could this product help to make your money work harder for your retirement fund.
Hope it is not to plug up some hole caused by the meltdown or subprime.; July 02, 2008 8:12 PM
David said...: As it may not be required by law to declare asset shares, INCOME is not required to do do, especially when others didn't do it as well.
I think this is the "strategic" reason because you do not want to show unnecessary exposure to "attacks". Just like the GIC does not reveal the amount of reserves and how they invest, not even to Parliament.; July 02, 2008 8:29 PM
Falcon said...: But NTUC Income is not the government. It is a commercial enterprise with a co-operative base. Being a non-profit entity, it is imperative to be as transparent as possible, since this is good for the workers. At the same time, they do not have to fear the competition, since they exist not to profit and take away business from competitors but to act as a stabilising entity to moderate profiteering and hence transparency will help in this noble process. This is another major reason why policyholders are so angry with Income as they seem to have forgotten their roots and appear to try to capitalise and profit from the masses.; July 03, 2008 12:36 PM
Raymond T said...: Did you read the denial sent out by NTUC Income's CEO today?

Come on NTUC! Action speaks loudly than just mere rhetoric :(; July 04, 2008 10:07 PM