BSP Life investment portfolio is now valued at $660m (USD315.29m), positioning the life and health insurance provider as one of the largest leading institutional investors in the Pacific.
And the insurance company believes its numerous public awareness campaigns held throughout Fiji’s main centres on the importance of having an insurance policy were paying off now.
Last month, BSP Life, allocated F$21.4m (USD$10.2m) in bonus to its customers.
This brings total bonus allocations for the last three years to $53.8m (USD$25.7m).
BSP Life’s Managing Director Malakai Naiyaga said they are delighted to officially announce the 2017 bonus allocation for their policyholders which was an increase from $19.8m (USD$9.47m) in 2016 and $18.7m (USD$8.94m) in 2015.
This bonus allocation will add further value to customer’s policies and will assist them with future financial plans, said Naiyaga.
The year-on-year increases demonstrate BSP Life’s strong commitment to maximising returns for policyholders.
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 as well as 10 Customer Service Centres Fiji-wide.
“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 that allocates two types of bonuses; one is the reversionary bonus and the other is a terminal bonus.
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.
Terminal Bonus on the other hand 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. Terminal bonus is added when the policy is paid out.
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 their importance as vehicles for savings and capital formation,” added Naiyaga.
He commended policyholders for their loyaty 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.”
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 its commitments.”
BSP Life MD 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.”
Formerly owned by the Commonwealth Bank of Australia and operating as Colonial Life & Health, the company was acquired by Bank South Pacific of Papua New Guinea in November 2009 and rebranded BSP Life in 2011.
By Usa Koto
Haroon Ali is to be the new Country Head of Bank South Pacific in Fiji, the bank has just announced in a statement released a short while ago.
He succeeds Kevin McCarthy when he retires at the end of 2018.
Ali is currently BSP Group's chief risk officer currently based at bank headquarters in Port Moresby, Papua New Guinea, and when the changeover starts in June, he will become the first Fijian to head BSP's business in Fiji.
“As a village boy from Vunimoli in Labasa, my dream has always been to become a bank’s country head in Fiji. I have worked hard over the years since joining Bank of New Zealand in 1980 and today I am really excited to have finally realised that dream. I am very passionate about this job and would like to thank the Group Chairman, Group CEO and the BSP Board for giving me this great opportunity to lead BSP in Fiji," the BSP statement quoted Ali as saying.
"I would also like to thank Mr McCarthy firstly for recruiting me to this great organisation and secondly for his outstanding leadership at BSP that has seen the Bank grow from strength to strength," added Ali.
He has 38 years of banking experience in Fiji, Australia and Papua New Guinea, and prior to joining BSP, Ali had worked for the ANZ Banking group.