The Participating Business Committee (“PBC”) is an independent advisory party to provide independent and objective advice to the Board of Directors (“Board”) of Hang Seng Insurance Company Limited (“Hang Seng Insurance”) in respect of applicable participating funds, including but not limited to advice on recommendations made by the Appointed Actuary of Hang Seng Insurance on the allocation of distributable surplus and declaration of dividends. The PBC operates independently and reports directly to the Board, so as to support informed decision making which takes into account the principle of fair treatment of customers and equitable balance between shareholders and policy holders. Key matters on which the PBC advises the Board include, but are not limited to:
- Whether the level of future discretionary benefits provided in the benefit illustration is clear, fair and reasonably achievable;
- The policy and mechanism for allocation of distributable surplus and dividends declaration mechanism (including any smoothing mechanisms), taking into account reasonable expectations of policy holders (including but not limited to their expectations relating to reasonable achievement of discretionary benefits), fairness and equity, as well as sustainability;
- Fairness, equity and reasonableness in allocation of expenses and charges to and within applicable participating funds;
- The risk and investment profile of applicable participating funds, including the appropriateness of the risk appetite and risk level taken, the management and reasonable balance of risk and return, etc.;
- The impact of any management actions planned or implemented;
- Hang Seng Insurance’s strategy for future sales of insurance policies in applicable participating funds and their impact on surplus;
- The use, purpose, and terms of any shareholder capital support to an applicable participating fund;
- Hang Seng Insurance’s communications with existing and potential policy holders relating to applicable participating funds, including fairness and transparency of disclosed information which may affect policy holders’ decisions; and
- Any other issues which Hang Seng Insurance or the PBC considers appropriate in relation to Hang Seng Insurance’s management of its applicable participating fund.
At least half of the members of the PBC are independent of Hang Seng Insurance. The Chairman of the PBC is also independent of Hang Seng Insurance.