BSP Life, Fiji's leading Life and Health insurance provider announced at a press conference today that it allocated F$21.4m in Bonus allocations to its customers in 2017. This brings the total Bonus allocations for the last three years to $53.8m.
BSP Life's Managing Director Mr Malakai Naiyaga said, "I'm delighted to officially announce the 2017 bonus allocation for our policyholders which totals approximately $21.4m, up from $19.8m in 2016 and $18.7m in 2015. This Bonus allocation will add further value to our customer's policies and will assist them with future financial plans. The year on year increases demonstrate BSP Life's strong commitment to maximising returns for policyholders. We will continue to seek innovative ways to sustain this to encourage all existing policyholders to maintain their life insurance policies with us and to also attract those who have never taken up life insurance policies.
BSP Life is the only insurer in Fiji to allocate two types of Bonuses, one is the Reversionary bonus and the other is a Terminal Bonus.
The Reversionary Bonus is allocated from returns of BSP Life's investment portfolio and has remained at 2% of the sum insured plus accumulated bonuses and is applied on a compounding basis. This generates better value for customers compared to simple bonuses. The Terminal Bonus is a loyalty reward, based on the number of years the policy has been with BSP Life. The Terminal Bonus rate for 2017 is 0.65% increasing from 0.55% in 2016. The Terminal Bonus is added when the policy is paid out.
Mr Naiyaga explained that Bonuses were important for Policyholders as they added value on the policies which in turn increases the payouts at maturity or in the event of untimely passing of the life insured, to beneficiaries.
"Fiji is one of a few countries in the world that still offers policies with an investment or savings benefit and we have found that these products are attractive due to the absence of a fully-fledged investment market where individuals can invest. We hope that people will continue to see itheir importance as vehicles for savings and capital formation," added Mr Naiyaga.
Mr Naiyaga commended policyholders for their commitment to ensuring premiums were paid on time for the duration of the policy allowing it to accumulate value for them and providing valuable returns at important stages of their lives."
"It's delightful to see many Fijian households benefiting from their bread winners' investment in a BSP Life insurance policy. We view life and health insurance as an essential and integral part of one's financial planning."
"As Fiji's leading life and health insurance provider it is our firm belief, now more than ever, that insurance is a need and no longer a want. Our view is that life and health insurance are essential components of good financial planning, providing safeguards for families in the event of untimely death, medical treatment due to a chronic illness, as well as future life needs. With the prevalence of NCD's and low level of retirement funds for most of our people, BSP Life's policies can assist in putting aside a small contribution every week, fortnight, or month to build a fund that will support those needs."
Mr Naiyaga further added, "We take great care to be there when our policyholders need us most. Our ability to allocate these large Bonuses and Benefits year on year is underpinned by our strong financial standing. We have a stable, balanced and growing investment portfolio, sound governance processes and internationally recognised actuarial expertise to ensure we can deliver on our promises now and in the future. We take this responsibility seriously. Our message is simple, it pays to have life and medical insurance and you can trust BSP Life to honour our commitments."
Mr Naiyaga concluded, "We thank our policyholders for their confidence in us and can assure them and prospective new customers that we are committed to honouring this trust."
BSP Life has more than 80,000 policyholders, over 100,000 policies and 140 professional advisors licensed by the Reserve Bank of Fiji, plus Broker partners, to provide tailored solutions to customer needs. There are 10 Customer Service centres Fiji-wide.