Three insurers cut declared interest rates this monthBy Kao Shih-ching / Staff reporterCathay Life Insurance Co (國泰人壽), Taiwan Life Insurance Co (台灣人壽) and China Life Insurance Co (中國人壽) this month cut their declared interest rates for interest-sensitive products due to lower bond yields. The declared rates are used by insurers to calculate policyholders’ distributions, based primarily on their investment returns. However, three other major insurers — Nan Shan Life Insurance Co (南山人壽), Shin Kong Life Insurance Co (新光人壽) and Fubon Life Insurance Co (富邦人壽) — kept their declared rates unchanged for this month. But we would review routinely if their changes are reasonable,” Tsai said, referring to a new rule that took effect last month requiring insurers to set up a mechanism to smoothen their declared rates. Insurers cannot intentionally raise their declared rates just to poach clients, he added.

Source: Taipei Times August 03, 2020 15:56 UTC