Participating business: why clear governance matters

November 2023

Participating insurance business represents a multi-billion dollar industry throughout Asia. Offering the possibility of higher returns than might be obtained from a deposit account, customer appetite for insurance savings policies remains strong. From the insurance companies’ perspective, the appeal of participating business is strong also provided the balance between risk and return can be expertly managed.

With increased customer advocacy and the fair treatment of customers rising up the agenda of regulatory authorities, how insurance executives exercise discretion in the management of participating business is coming under increasing scrutiny. Management judgement needs to be complemented with process to help deliver a fair, consistent outcome for all parties.

In this article, we explore some of the emerging themes regarding process and governance and draw on experience from other territories to illustrate some of the ideas.