This is one example of an alternative method that can be used for Bonus Management. This method must however be used carefully to ensure that sufficient model points are analysed when recommending any Bonus/Dividend Adjustments.
Assumptions used when adopting this method may be set using Section 2.2 as a reference.
The Appointed Actuary must be satisfied that the Method and Assumptions adopted here are equitable to the par policyholders and suitable to his/her Company’s business.