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Baht/$ 34.17/19 (Bid/Ask)
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GOLD |
13,350
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DARANA CHUDASRI
Despite frenzied calls to AIA from Thai customers uncertain about the long-term security of their insurance policies last week, the company reported very few terminations.
According to AIA senior vice-president Sutti Rajitrangson, only 15 or 20 policies were terminated or surrendered per day during the critical period last week.
"The termination rate is normal, and an insignificant amount compared with 4.8 million policies the company has signed up," he said.
In Singapore, after the AIG reports broke, hundreds of anxious investors flocked to the AIG office. Mr Sutti said that was because most of the policies in Singapore were investment-related, in contrast to the local market where policies focused on life insurance and long-term savings.
An unnamed AIA agent said he received only two calls from more than 1,000 policyholders for whom he is responsible.
He said his customers, mostly working in the financial system, thoroughly understood what was happening to US-based AIG and that the impact on AIA Thailand's financial strength was negligible.
Khun Pat, another AIA agent with more than 1,000 customers, said she also had a few calls from customers but no one cancelled a policy.
"I had experience handling a similar case 20 years ago when AIA was severely attacked by industry rivals as a 'foreign' firm that draws local money to its foreign parent," she said.
"This is despite the fact that AIA is a juristic person incorporated in Thailand and regulated rigidly under the Thai life insurance regulations. Any fund transfers or dividend remittances have to win first approval of the regulatory body and most of the assets are invested in our country."
However, Khun Nid, a 43-year-old housewife with a six-year-old child, said she felt a bit nervous and confused about whether to terminate her contract and obtain cash.
The anxiety arose even after her agent clarified to her that AIA had no stock exposure in AIG, which could not draw money from its Thailand branch.
Khun Nid has paid her premiums for six years for a 12-year insurance plan. She could lose hundreds of thousands of baht if she redeems the contract early.
"Actually, I don't want to cancel my contract, but I got really nervous after listening to a radio programme on which one financial guru recommended early redemption if the policy is close to maturity date. What should I do?"
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