This Policy Statement (PS) will be of interest to all firms writing new with-profits business or with existing books of with-profits business. It may also be of interest to consumers who may be affected by the subject, whether as with-profits policyholders, as shareholders in a life insurance company or as members of a mutual life insurer or friendly society.
We consulted on changes in several areas of with-profits business.
These were :
- the fair treatment of with-profits policyholders generally and in mutually-owned long-term insurance funds specifically;
- conflicts of interest;
- the terms on which firms should write new business;
- the effect of material reductions in new business;
- Market Value Reductions (MVRs);
- strategic investments;
- excess surplus;
- reattributions; and
- the role of independent judgment including With-Profits Committees and other aspects of corporate governance