Asia Participating Business Survey

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By Nigel Knowles, Richard W. Holloway | 20 June 2013

Milliman carried out a survey of senior life insurance executives to gauge the current views on a number of issues relating to participating business across Asia. Some of the main survey findings were:

  • The overall importance of par business will remain high.
  • There is a wide variety of product propositions in many territories, ranging from “risk-free plus” (either deposit rates or sovereign bond yields) up to a smoothed return benefiting from guarantees.
  • Respondents believe par business offers reasonable (affordable) levels of guarantees and reasonable levels of profitability to insurance companies.
  • Governance varies widely.
  • Key risks to continued success are low interest rates and product illustrations.
  • The interpretation of policyholders’ reasonable expectations (PRE) is poorly understood by policyholders.
  • The overall prognosis for participating business is positive.