On 28 Feb 2025, the Insurance Authority issued a Practice Note mandating the use of specified illustration rate caps in benefit illustrations for participating policies at point of sale, effective 1 July 2025. The Practice Note sets minimum expectations for authorized insurers and licensed intermediaries to align with policyholder expectations on policy performance, applying to all benefit illustrations provided under long-term business.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On 28 Feb 2025, the Insurance Authority (IA) issued a Practice Note on Illustration Rate Caps in Benefit Illustration for Participating Policies, which will take effect from 1 July 2025. The Practice Note establishes minimum expectations for authorized insurers and licensed insurance intermediaries regarding the illustration rate caps to be used in benefit illustrations for participating policies at the point of sale, ensuring policyholders' reasonable expectations on policy performance are met.
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