MAS assures AIA Policyholders

No Comment - Post a comment

MAS responded swiftly to assures the public that our AIA policy is safe should AIG goes into liquidation as there are sufficient funds set aside internally by AIA as part of Singapore's Insurance Act and Regulations. Hence, I urge those policy holders not to surrender your policy as a mass surrender will only made things worse.

15 Sept 08

MAS' Response to Queries on AIA:

"As a Singapore registered insurer, American International Assurance Company, Limited, Singapore Branch (AIA) is required under the Insurance Act and Regulations to maintain sufficient financial resources to meet all its liabilities to policyholders at all times. AIA currently meets these regulatory requirements. MAS will continue to monitor the financial position of AIA.

With regard to policy owners' protection fund (PPF), the legislative power for MAS to establish such a fund already exists in the Insurance Act.

The American International Group Inc. (AIG), the ultimate parent of AIA, is not regulated by MAS. We are therefore unable to comment on AIG's position."

MAS' Response to Queries on AIA :

"MAS has received queries from the public on the regulatory requirements which insurance companies have to meet, in particular, AIA Singapore.

As with all insurance companies in Singapore, AIA is required under the Insurance Act to maintain statutory insurance funds, including an investment-linked fund. These funds are segregated from its head office and other shareholders’ funds. Within these insurance funds, AIA must maintain sufficient assets to meet all its liabilities to policyholders, which include participating policies and investment-linked policies. The value of these assets is not linked to AIA's or AIG’s financial condition, but like all investments, their value may be affected by general market conditions. MAS requires all insurance companies in Singapore to manage their investment risks carefully and we are monitoring the situation closely.

There are also queries on whether the financial condition of AIG would have an impact on AIA. AIA currently has sufficient assets in its insurance funds to meet its liabilities to policyholders. Policyholders should, therefore, not act hastily to terminate their insurance policies with AIA as they may suffer losses from the premature termination and lose the insurance protection they may need. "

More story.

This Post has No Comment Add your own!

Post a Comment