Lavish spending at expense of policyholders

Insiders of two local insurance companies told me that their new management has increased the expenses tremendously compared to the old management - salaries of top executives, advertising, engagement of consultants, etc.

These high expenses are made at the expense of the policyholders, as the bonuses have been cut. They are quite sad that the frugal approach of the old management in looking after the interest of the policyholders, are now being spent away lavishly.

I wonder what the board of directors of these companies are doing in respect of their fiduciary duty? Are they so busy that they do not bother to find out what is going on in the management? I also wonder what the regulator is doing about this type of lavish spending at the expense of the policyholders who have saved frugally for their financial future and are now getting a poor yield?

Tan Kin Lian