Friday, December 25, 2015

Claim and profit ratio of insurance policies

Dear Mr. Tan
Thank you for sharing the statistics about the claim ratio and the profit ratio of various insurance policies.

I looked at the critical illness policy, which I have bought from (name removed). Can you tell me why Prudential has a claim ratio of 18.3% and a profit ratio of 27.1% while AIA had a higher claim ratio of 25.0% and a higher profit ratio of 38.9%?

Does it mean that Prudential has higher commission and expenses than AIA?And why is AIA listed twice in your website?

I show the link to your webpage

The figures are taken from the MAS website.

Before arriving at the profit, the insurance company provides the premium, claim, commission, expenses, reserves and investment income.

If you register an account and sign in, you can see the full view which shows the commission and expenses as well.

AIA is listed twice because they operated as a branch of AIA Hong Kong previously and now as a separate Singapore company in the later years.

1 comment:

Anonymous said...

The public must understand why insurance agents are only interested in peddling these products and so do the insurance companies.
1. These products are not efficient and down right rotten in return for financial planning purpose, ie. they are good for the agents and the company and NOT the consumers as can be seen from the data posted in MAS website.
2.The buyers must always ask why the agents are recommending the products and ask what is the commission for them. If the agents try to evade the question just run as fast as you can.
3. Before agreeing to buy tell the agents to let you consider but you
Go to to compare. In the portal you can compare term, whole life and endwoment products.
4.If you must buy these rotten products why not buy from
(a) fundsupermart and(b) provident financial adviser to get a 30% rebate in the commission OR ask the agents to give you a larger REBATE (as much as 50% or more) if they are interested in your business or else don't buy.
The public must protect themselves from these predators who are only interested to plunder you of your hard earned saving.
Another point , if the agents tell you that their products can give 3% after 25 years tell them to fly kite , you are better off buying the SSB.
Don't trust the insurance agents, they are likely conmen and women.

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