Singapore-based United Overseas Bank (UOB) is strengthening its regional partnership with multinational insurer Prudential by launching Thailand's first investment-linked life insurance policy that locks in the highest net asset value (NAV) over the contract's lifetime.
PRUAssure Link, which was launched in Malaysia and Singapore in 2022 and mid-2023, respectively, offers a "locked in" highest NAV, with no premium charge for the regular premium throughout the contract period, and a loyalty bonus payout every eight years, starting from policy year nine.
The move responds to growing demand for advanced wealth protection and investment solutions, driven by the interest rate environment and market volatility. According to the Thai Life Assurance Association, Thai investors have increasingly shown strong interest in investment-linked life insurance products, with an annual growth rate of 10% during 2021-2023.
PRUAssure Link is a significant addition to UOB's private wealth portfolio, offering a unique and sophisticated solution for customers who want to transfer their legacy to their families or are actively seeking higher investment returns through mutual fund investments, said Gidon Jerome Kessel, the bank's head of deposit and wealth management.
"This plan, exclusively brokered by our regional bancassurance partner Prudential, not only secures wealth but also provides growth potential, making it one of the most progressive offerings in the market today," he said.
PRUAssure Link has a received good response from customers in the region to date, generating nearly S$80 million (about 2 billion baht) in sales after its launch a year ago. In Thailand, UOB wants the product to account for about 10% of its total annualised premiums this year, and further increase to 15-20% next year.
In 2024, UOB aims to increase its bank assurance sales by 20%, following a 10% growth seen in the first six months. Mutual fund sales are projected to expand 30-35% over that of 2023 after rising 25% year-on-year in the first half.
Don Charnsupharindr, chief commercial officer at Prudential Life Assurance (Thailand), said most investment-linked insurance policies in Thailand do not guarantee returns and ultimately depend on how the fund performs.
PRUAssure Link secures customers' wealth at the highest peak NAV over the life of the policy to assure their legacy is securely passed on to their family, he added.
"At UOB Thailand, we are committed to providing financial solutions that align with our customers' evolving needs and life stages," said Mr Kessel, adding that the new investment-linked product has been designed with diverse investment choices with access to over 20 curated mutual funds, both local and international.
Prudential, headquartered in London and Hong Kong, serves more than 1.6 million customers in Thailand and manages assets worth more than 112 billion baht on their behalf.