Insurers to cut bonuses

Policyholders in Singapore can expect their bonuses on endowment and whole life policies to be cut following a dismal investment performance in 2008.

Company that have decided to cut: Great Eastern
Company yet to decide: AIA
Companies declined to comment: Prudential, NTUC Income, Manulife
Company not cutting: TM Asia

Source: Asiaone

Treat customers fairly in bonus reduction

Several insurance companies in UK have cut bonuses lately due to the weak investment performance, falling asset values and low interest rates:

• Friends Provident: cut up to 20%
• Norwich Union (owned by Aviva): cut up to 15%

Market Value Reductions are also applied to surrender values.

FSA has reminded insurance companies to treat customers fairly in the bonus reduction.

It is likely that some insurance companies in Malaysia will also reduce bonus rates in this round of bonus declaration.

Source: Insurance Daily

10% Mudharabah Payment

Syarikat Takaful Malaysia Bhd (STMB) has declared 10% Mudharabah payment to general takaful products participants.

Eligible participants are those holding general takaful certificates that have expired between 1/3/2007 to 31/12/2007 and have made no claims. There was no news on any Mudharabah payment to family takaful participants.

Future payments of Mudharabah are expected to be smoother with the implementation of new system and the re-engineering of business processes.

Last month, a reader wrote to Malay Mail to complain about the delay in getting discount on his motor policy which they company explained was due to the upgrade of system and business processes.

http://tehloohai.blogspot.com/2008/03/takaful-refund-delayed.html

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