Insurance par funds return to the black but no bonus uplift from 2023

POLICYHOLDERS with traditional or participating insurance plans can breathe a sigh of relief. Virtually all insurers’ par funds returned to the black at end-2023, after posting losses – some in double digits – in 2022.

But even with the improved performance, most have chosen to hold their annual bonus rates steady.

The exception is AIA, which has raised the bonus and dividends rates for a block of policies, “while maintaining the rates for the majority of policies at the same scale as the previous year”. AIA said the increase in bonus and dividends is “part of our annual review” and does not comprise a special dividend.