Interview
Understanding the Fulfilment Ratio: A Smarter Way to compare insurers
July 2026
6 mins
When buying insurance, most people focus on the return of the policies – but is the “projected return” shown in the proposal reliable? In this episode, we take to the streets to answer some of the most common questions in the market, and shine a light on one critical, yet often overlooked metric: Fulfilment Ratio. Understanding it could make all the difference in choosing the right insurer.
Key Highlights
In our street interviews, many respondents shared that when choosing a participating insurance plan, they consider the size of the insurer and the potential returns on offer. Most expressed concern that actual returns would fall short of expectations, yet they may not fully understand the figures shown in their policy proposals.
- The “total return” shown in a participating insurance plan is made up of two parts: guaranteed cash value and non-guaranteed benefits. The former is the guaranteed value stated in the policy, while the latter depends on the following factors such as:
- the insurer’s investment performance;
- claims experience, lapses, and operating costs;
- long-term investment outlook.
- That’s where the Fulfilment Ratio comes in. The metric reflects how closely the insurer’s non-guaranteed benefits have matched its original projections over time. A ratio close to 100% means the insurer has consistently delivered on their promises, while a ratio above 100% means it has outperformed expectations.
- Comparing Fulfilment Ratios across insurers gives you a more objective view of historical dividend performance, rather than relying solely on projected returns. A plan with a higher projected return may not necessarily perform better. However, it is also important to note that past performance is not a guarantee of future results.
- Before committing to a policy, take the time to look over the product structure and projected figures, and consider the insurer’s history alongside your personal financial goals, and your risk tolerance. By understanding the Fulfilment Ratio, you can make a well-informed choice to build a long-term protection plan.
- Over the past year, HSBC Life’s participating insurance products delivered a Fulfilment Ratio of up to 121%*. To learn more about HSBC Life’s participating insurance products, please visit the HSBC website.
*Fulfillment ratios for annual dividends and special bonuses applied to participating products issued in Hong Kong SAR market (HKD and USD policies).
View the Fulfilment Ratios for HSBC Life’s participating insurance products?
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Disclaimer
The above examples, scenarios and the figures shown in the illustrative example are hypothetical and for illustrative purposes only.
The information contained in this video is for general reference only and is not intended to constitute a recommendation or advice to any person or to be the basis for any financial decision. No person should act on any information in the video without seeking professional advice. There are certain assumptions that are used in the above scenarios and/or illustrations. Details will need to be considered on a case-by-case basis, subject to the terms of the relevant policy.
The information contained in this video does not constitute an offer for the purchase or sale of any banking or insurance products or services. Products and services are subject to individual needs. Contact your Wealth Planning Specialist financial planner to review your financial needs and risk acceptance level. Under any and all circumstances, HSBC Life and/or HSBC Group shall not be liable for any damages, losses or liabilities, including but not limited to direct or indirect, special, incidental, consequential damages, losses or liabilities, in connection with your or any third party’s use of this video or your reliance on or use of or inability to use the information contained in this video. This video should not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose.
HSBC Life is authorised and regulated by the Insurance Authority to carry on long-term insurance business in the Hong Kong SAR. HSBC Life is incorporated in Bermuda with limited liability, and is one of the HSBC Group’s insurance underwriting subsidiaries. Insurance products provided by HSBC Life are only intended for sale through HSBC in the Hong Kong SAR. Policyholders are subject to credit risk of HSBC Life. For monetary disputes arising between HSBC and you out of the selling process or processing of the related transaction, HSBC will enter into a Financial Dispute Resolution Scheme process with you; however any dispute over the contractual terms of the product should be resolved between HSBC Life and you directly. For details and information about HSBC Life products, please visit the insurance-related pages at HSBC’s website or visit our branch.
Issued by HSBC Life (International) Limited (Incorporated in Bermuda with limited liability)
© Copyright. HSBC Life (International) Limited. All rights reserved.
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