Support My Efforts By Visiting The Advertisers


This is a personal blog. The opinions expressed here represent my own, not those of my employer and is not intended to malign any religion, ethnic group, club, organization, company, or individual.

Orphaned money doesn't exist

>> Monday, August 24, 2009

Straits Times Forum
August 24, 2009 Monday

With reference to letters by Mr Larry Haverkamp, 'Orphaned money: Key question MAS has not addressed', and Mr Tan Kin Lian, 'Concept of asset share is fairer to policyholders'. Darren Thomson, President of The Life Insurance Association Singapore and Frank McInerney, President of the Singapore Actuarial Society clarifies some misleading comments.

First, 'orphaned money' does not exist in the participating fund ('par fund') of life insurers in Singapore. Life insurers are required under the insurance regulations in Singapore to hold all par fund policy assets to support par policies. Any gains or losses from early surrender will be retained in the par fund and shared by the remaining par policies.

Second, the concept of 'asset share' is widely used by life insurers in Singapore to determine bonuses for each cohort of par policies within the par fund. As well as other factors such as long-term solvency of par fund.

Third, as the primary objective of par policies is to provide stable medium- to long-term returns, life insurers have to smooth bonuses declared from year to year. This means the payout may be higher than its asset share in certain years and lower in other years.


Blogger May 28, 2017 at 11:17 AM  

eToro is the ultimate forex trading platform for newbie and professional traders.



The owner of this blog does not share personal information with third-parties nor does the owner store information is collected about your visit for use other than to analyze content performance through the use of cookies, which you can turn off at anytime by modifying your Internet browser’s settings. The owner is not responsible for the republishing of the content found on this blog on other Web sites or media without permission.

Blog Comments

The owner of this blog reserves the right to edit or delete any comments submitted to this blog without notice due to;

1. Comments deemed to be spam or questionable spam
2. Comments including profanity
3. Comments containing language or concepts that could be deemed offensive
4. Comments that attack a person individually

Terms and Conditions

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

This policy is subject to change at anytime.

About This Blog

To promote the education of individuals for the need to have a healthy lifestyle and wealth management through proper financial planning, particularly in investments.

Top Blogs


Top Sites

  © Blogger templates Sunset by 2008

Back to TOP