How to read fulfilment ratios: Hong Kong's disclosure rules and calculation basis, compared with Singapore's bonus disclosure

A fulfilment ratio is a figure that Hong Kong insurers publish for each product series: the non-guaranteed bonuses actually declared on participating policies, divided by the non-guaranteed bonuses shown in the benefit illustration under the best-estimate scenario at the point of sale. It answers the question "how much of the illustrated bonus was actually delivered?" Singapore has no such measure and instead requires disclosure of the participating fund's investment returns, expense ratio and bonus rates. Both markets are trying to narrow the gap between what is said at the point of sale and what is delivered afterwards; they simply go about it differently.

Applies to: Hong Kong (fulfilment ratio rules) and Singapore (alternative disclosure). This page does not list fulfilment ratios for any company or product and does not rank them.

Definition and formula

Paragraph 2.1 of the Insurance Authority's (IA) interpretation notes on GL16 (issued February 2023, effective 1 January 2024) requires authorised insurers to disclose, at least by product series, the product type and fulfilment ratios of their participating policies. The fulfilment ratio is calculated as the average ratio of "non-guaranteed bonuses actually declared" to "non-guaranteed bonuses illustrated under the best-estimate scenario provided to customers at the point of sale".

As a simplified formula:

Fulfilment ratio = non-guaranteed bonuses actually declared ÷ non-guaranteed bonuses illustrated under the best-estimate scenario at the point of sale

The Investor and Financial Education Council (IFEC) gives an example: if the benefit illustration projected accumulated bonuses of 80 dollars and 50 dollars were actually paid, the fulfilment ratio is 62.5%; if the actual amount matches the projection, the ratio is 100%; if it exceeds the projection, the ratio is above 100% (source: IFEC, December 2022).

Three points are worth noting. First, the denominator is the illustration at the point of sale, so policies in the same product series sold in different years each have a different illustration as their benchmark; what insurers publish is an average aggregated by policy year. Second, the numerator counts only bonuses already declared; future bonuses are not included. Third, a fulfilment ratio measures the degree of delivery, not a rate of return. A ratio of 100% only means that delivery matched the illustration; whether the illustration itself was high or low has to be read from the benefit illustration. For the illustration rules, see Illustration caps compared.

Calculation basis: why the three types of bonus are measured separately

The non-guaranteed part of a Hong Kong participating savings plan is usually made up of several types of bonus that behave very differently, which is why paragraph 2.8 of the interpretation notes requires fulfilment ratios for annual dividends, reversionary bonuses and terminal bonuses to be disclosed separately.

Because a terminal bonus can be raised or lowered before it is paid, its fulfilment ratio reflects the terminal bonus level at the reporting date relative to the illustration, and it tends to fluctuate more than annual dividends and reversionary bonuses. In many participating savings plans, terminal bonuses make up a large share of the non-guaranteed benefits, so when reading the table it is better to look at them separately from the other bonuses rather than relying on a single "overall" figure.

In addition, paragraph 2.5 allows the same product series in different currencies to be disclosed together where the differences are not material; where an insurer has combined them, the table usually says so. For the effect of the currency choice itself, see Choosing the policy currency.

Scope, timing and where to find the figures

The interpretation notes specify who must disclose, how many years must be shown and where the figures are published:

1. Scope: product series that have issued new policies since 2010 and still have policies in force in the reporting year must be included; policies issued before 2010 need not be counted (para 2.2).
2. Years covered: ratios are calculated year by year for the most recent 10 policy years as at the reporting year; years beyond 10 may be shown combined (para 2.6).
3. Location: the figures must be disclosed on the insurer's website (para 4.1), and the web address must be shown prominently in the product brochure and the benefit illustration (para 4.2); the IA website also maintains a "list of insurers' websites for fulfilment ratios" linking to each company.
4. Statements: the criteria for including and excluding product series must be stated, along with a statement that past bonuses are not indicative of future declarations (para 4.3).
5. Timing: figures must be updated no later than 30 June each calendar year (para 4.6); the IA carries out random reviews (para 5.2).
6. Legal status: the interpretation notes do not themselves have the force of law, but non-compliance may amount to a breach of the relevant provisions of GL16 (introduction); they supersede the IA's related circular of 18 September 2015 (para 6.1).

The revised GL16 (effective 31 March 2026) goes further by writing the publication of fulfilment ratios on the insurer's website into the guideline itself, and requires insurers to notify policyholders at least once a year of the non-guaranteed benefits declared and to provide an updated projection for the in-force policy (according to law firm DLA Piper).

How to read fulfilment ratios: above and below 100%, and four common misreadings

Reading 1: look at the later policy years, not just the first page. The IFEC points out that projected bonuses are small in the early policy years, so it is relatively easy for insurers to come close to 100%; later policy years have a larger bonus base and say more about long-term performance (source: IFEC, December 2022). A series that shows 100% in policy years 1–3 tells you nothing about year 15.

Reading 2: look at each type of bonus. A high fulfilment ratio for annual dividends does not mean terminal bonuses are equally stable, and vice versa.

Reading 3: new products need a different benchmark. Insurers generally begin publishing about a year after a product is launched, so a new series has no record or only a very short one. The IFEC suggests looking at the history of similar products from the same insurer, but this is only an indirect guide.

Reading 4: the past does not indicate the future. This is the statement every insurer is required to include under the interpretation notes. Fulfilment ratios reflect past investment conditions, claims and expense experience, and the illustration levels used at the time. Since 1 July 2025 Hong Kong has capped illustrations, so the denominator for policies sold after that date rests on a different basis from the past, and fulfilment ratios for older and newer series should not be compared at face value.

On third-party data: the Hong Kong fulfilment ratio index compiled by actuarial consultancy Milliman shows its industry-level index for the companies in its sample edging down from 90% in reporting year 2023 to 89% in 2024, having reached 95% in 2019 (source: Milliman, 1 May 2026; secondary source compiled on its own methodology, not official IA data; past performance does not indicate future results). For market data, see also Market data.

Singapore: no "fulfilment ratio", so what to look at

Singapore participating policies are also backed by a participating fund, and their bonuses are also non-guaranteed, but MAS does not require a "fulfilment ratio" to be published. The alternative information comes mainly from the product summary and annual notices required under MAS Notice 320:

The consumer guide from LIA and MoneySENSE also describes an important feature of Singapore participating policies: once a non-guaranteed bonus has been added to the policy, the insurer cannot reduce or take it away at the time of a claim; a reversionary bonus becomes part of the guaranteed benefits once added, but only part of it is paid on surrender (source: LIA / MoneySENSE, May 2020).

The difference can be summed up as follows: Hong Kong lets readers see the "illustrated vs actual" ratio directly, while Singapore gives readers the raw data on fund performance and bonuses actually declared, which they then need to compare with their original benefit illustration themselves. For a fuller account of the Singapore bonus mechanism, see our sister site wholelife.com.sg.

Checklist for reading the tables

When you have a Hong Kong fulfilment ratio table or a Singapore Annual Bonus Update in hand, check the following in order:

1. Which product series and currency the table covers, and whether they match your own policy.
2. Whether bonuses are shown separately as annual dividends, reversionary bonuses and terminal bonuses; for products where terminal bonuses make up a large share, focus on the terminal bonus column.
3. Look at the later years within the most recent 10 policy years, not just the first few.
4. Where a new series has no record, what the insurer uses as a reference and whether the table says so.
5. Whether reversionary and terminal bonuses are measured at cash value or at face value.
6. For Singapore policies: compare the return assumptions in the benefit illustration with the participating fund's actual net returns and bonus rates in the product summary.
7. Whether the annual notice provides an updated projection, how far it differs from the original benefit illustration, and what reasons the insurer gives.

Fulfilment ratios and bonus information describe only the past and cannot be taken as a promise of future declarations. If you would like your own policy interpreted, you can register your needs through the contact details on this site.