What are participating policies and fulfillment ratios?

A participating policy has guaranteed benefits and non-guaranteed dividends or bonuses. A fulfillment ratio compares past non-guaranteed benefits with amounts illustrated at sale; 100% means that component matched its illustration, not a 100% investment return. Hong Kong Insurance Connect explains the data and refers to licensed brokers, without recommending products.

Checked on 12 Oct 2026 · Historical ratios do not indicate future performance.

What is guaranteed and what can change?

Separate the guaranteed column of the benefit illustration from non-guaranteed annual dividends, reversionary bonuses and terminal dividends or bonuses. A projection is not a contractual promise. A participating policy may be used for life protection or savings; its name alone does not establish the guaranteed surrender value or how much will be received on death. Ask for the policy schedule and the applicable illustration. [R1, R2]

Declared reversionary bonus face value and its cash value on surrender can differ. Do not substitute a death-benefit figure for money available on early surrender. Non-participating policies do not share profits through this participating dividend mechanism; confirm their actual contractual benefits rather than assuming every whole life policy pays dividends. [R2, R3]

How does IA GL16 define a fulfillment ratio?

GL16 requires insurers to disclose historical fulfillment ratios for relevant participating product series, subject to its scope and any IA agreement. Broadly, the ratio compares non-guaranteed dividends or bonuses actually declared with amounts illustrated at the point of sale. The calculation uses the relevant portfolio and prescribed basis, not a prediction for an individual new policy. [R1, R4]

The benefit components are shown separately: annual dividends including accumulation interest where applicable, reversionary bonuses including their cash value, and terminal dividends or bonuses. Reporting year and policy year are different: the former identifies the disclosure period; the latter describes how long the cohort has been in force. Inspect every available policy year instead of selecting one favourable cell. [R1, R4]

Does 100% mean I earned that return?

No. A ratio near 100% means the relevant historical component was near the amount illustrated at sale; above or below 100% indicates more or less than that illustrated amount on the applicable basis. It is neither the return on premiums nor a claims approval rate. Different starting projections can produce similar ratios while producing different cash benefits, so ratios alone cannot rank products or insurers. [R3, R4]

How do I read the ratio pages on this site?

Start at the fulfillment ratios hub, then open an insurer, such as AIA ratios or Manulife ratios. These are navigation examples, not recommendations. Match the exact product series and version to your policy, then check the published currency or grouping, issue-year cohort, reporting year, component, value, footnotes, source and checked date. Our rows retain the insurer’s distinctions; “All” currency is a published grouping, not a currency you can purchase. [R5, R6]

An unavailable, unreadable or not-applicable cell is not zero. A series closed to new sales can still matter to an existing policyholder. Follow the source link in the page’s source section to the insurer’s own disclosure and read its calculation notes. Product versions and reporting bases can differ, so do not splice separate components or cohorts into an invented overall score. [R4, R5, R6]

How are ratios different from IRR and break-even?

A fulfillment ratio compares a non-guaranteed component with an earlier illustration. Internal rate of return (IRR) instead depends on the timing and size of premiums and benefits; break-even asks when the selected policy value reaches premiums paid. For an actual decision, ask the licensed broker for cash flows using guaranteed and illustrated scenarios separately, with the surrender year, charges, currency and any financing cost identified. Past ratios cannot turn an illustrated break-even date into a guarantee. [R1, R2]

What should I read before making an enquiry?

Read premium financing risks if borrowing is involved, and term versus whole life to distinguish savings from protection. Your country guide and the Mainland guide cover cross-border issues; our trust page explains the referral role. Send a general enquiry with the product name, version and disclosure row you want explained. Advice and arrangement belong with a licensed Hong Kong broker.

What do readers ask about dividend policies?

Is the illustrated bonus written into my contract?

A non-guaranteed illustrated amount is a projection. Check the guaranteed benefits separately. [R1, R2]

Does a high ratio mean a high annual return?

No. The denominator is an illustrated benefit component, not the premiums invested. [R3, R4]

Can I compare two insurers using one percentage?

That omits differences in projections, benefits, cohorts and calculation bases. We do not produce such rankings. [R1, R4]

Why are terminal and annual bonuses in separate rows?

They are different benefit components and GL16 requires appropriate separate disclosure. [R1, R4]

Is a blank or unavailable value a zero payout?

No. It is a data status. Check the published note and source before interpreting it. [R5, R6]

Does last year’s ratio tell me what I will get next year?

No. Historical trends are not an accurate indicator of future performance. [R1]

Does whole life insurance always pay dividends?

No. Some whole life policies are participating; the contract determines whether dividends apply. [R2]

Where are the sources?