Insurance industry to reduce par policies' illustrative rates of return

Singapore

AN ENVIRONMENT of persistently low interest rates has prompted the insurance industry to reduce the illustrative rates of return used for participating (or "par") policies.

The Life Insurance Association (LIA) said on Wednesday that the upper bound for par policies' projected rate of return will be reduced from 4.75 to 4.25 per cent; the lower bound will be revised from 3.25 to 3 per cent.