The Business Times

Most life insurers are in position to pay out non-guaranteed bonuses

Figures show their reserve buffers can support payouts

Published Tue, Nov 24, 2015 · 09:50 PM
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MOST of the 10 major life insurers here now have less of an excuse not to pay out non-guaranteed benefits or bonuses on their products linked to participating funds - because they are all in a position to do so, the latest filings show.

In a participating or Par insurance product, a reversionary bonus is an annual bonus that cannot be reduced once it is added; a terminal bonus is added on top of the reversionary bonus and allocated to policyholders when they make claims or when their policies mature.

Neither of these bonuses are guaranteed.

A rough measure of whether an insurer is in a position to pay out future non-guaranteed bonuses - based on publicly available data - is the size of its reserve buffer, which supports these pa…

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