Scenario planning helps Income Insurance add resilience to life fund

SCENARIO-BASED planning has become a key part of portfolio risk management for Income Insurance, under the watchful eye of chief investment officer David Chua.

Income Insurance manages roughly S$40 billion in assets, comprising participating (par), non-par and investment-linked funds. Par funds are managed with a view to meeting long-term liabilities, which include death and maturity benefits, and annual bonuses.

Chua said: “We want to be able to meet policyholder expectations with regards to returns at the time they bought the policy. In the past 15 years, expectations of returns have come down gradually as interest rates dropped.