Standard Life has warned it may start imposing exit penalties if concerns about the life industry's financial strength prompt a rise in the number of early policy surrenders.
Chief executive Iain Lumsden maintained that the group's financial position was strong, but also said it might have to make an interim cut in its with-profits bonuses earlier than usual.
Standard Life is unusual among life assurers in not imposing exit penalties.
Standard Life's decision follows some by its main rivals - such as Norwich Union, Scottish Widows and Friends Provident - who have cut with-profit bonuses recently.
Lumsden said: "We can manage ourselves through any bear market. What I feel concerned and worried about is the effect of some newspaper articles on our own policyholders' confidence. That's a problem."
Standard Life has said there has not been much policy surrender activity. The volume of surrenders this year was around £15m, out of a with-profits life fund of £22bn.
Lumsden added: "The more talk there is about our bonuses going down, the more likely it becomes that we are going to have to apply market value adjusters.
"Of course payouts are going to have to come down, and there's no point in denying that."
