How much CPF money is in AIA?
Who has the numbers?
Nothing to worry about lah. Safe lah.
When and how Capitalism will collapse into a Heap?
Can it ever happen? Think.
Don't give up policies in ST, 17th Sept 08
By Lorna Tan, Finance Correspondent
ST PHOTO: FRANCIS ONG
THE Monetary Authority of Singapore (MAS) yesterday urged jumpy AIA policyholders not to rush to surrender their policies, saying that the insurer is still able to meet all its liabilities.
Surrendering policies early might mean financial losses for customers and the loss of potentially important insurance protection, the regulator warned.
The MAS statement came as about 1,000 anxious policyholders thronged insurer AIA Singapore's Customer Service Centre in Finlayson Green yesterday.
Many wanted to surrender life policies amid fear and uncertainty over AIA's future financial stability. AIA is a subsidiary of the world's largest insurer American Insurance Group (AIG), which some fear may be on the brink of collapse.
MAS' advice is shared by financial experts, who urged customers to wait for further developments and greater clarity.
Financial adviser Providend's head of risk management and special projects, Mr Eddy Cheong, said one risk of surrendering early is that customers might not get much cash back.
This is because policies such as whole life and endowments are structured as long-term contracts, he said.
Another risk is that customers may not be able to secure the same coverage and premiums from other insurers if, for instance, their health has deteriorated since the time they took out the AIA policy.
Last evening, AIA assured customers that it has more than sufficient capital and reserves to meet all its obligations.
The firm said that like other life insurers here, it maintains separate insurance funds for all policies issued in Singapore, including investment-linked policies - life policies where some of the premiums are invested in stocks and so forth.
'The funds maintained in Singapore are segregated from AIG and are held specifically for the purpose of meeting our obligations to policyholders,' said AIA's executive vice-president and general manager, Mr Mark O'Dell.
This point was also stated in MAS' statement, which added that the value of these assets is not linked to AIA or AIG's financial condition. Still, like all investments, their value may be affected by general market conditions, MAS said.
Mr O'Dell added that although AIG faces short-term liquidity pressures, it has a strong, well-positioned business in Singapore.
'We would like to assure our customers of AIA's commitment to meeting their needs,' he said.
With 4,000 agents and over two million policies in force, AIA is the one of the largest insurers operating here. It offers a range of products such as whole life, term, endowment, investment-linked insurance policies, personal accident, home insurance, health insurance and education saving plans.
Yesterday, about 40 AIA customers were already waiting outside the centre when it opened its doors at 8.45am.
By late morning, this had swelled to hundreds of customers eager to make inquiries and, in some cases, surrender their policies.
They were not daunted by the long waiting time of two to three hours to see an AIA staff member after obtaining a queue number.
In the queue was AIA customer John Tan, 53, who wanted to surrender five AIA policies that he has owned for about 12 years.
'There is a lot of uncertainty in the US market and financial institutions are collapsing one by one. If AIG files for bankruptcy and AIA goes bust, our funds may be frozen or suspended and I may lose everything,' he said. His annual premiums amounted to $50,000.
AIA customers can call a dedicated hotline 6248-8355 if they have any queries on their policies.
lorna@sph.com.sg
September 17, 2008 Wednesday, 05:38 AM
