AIA Policy Holders need not Worry

Thanks to the strict MAS policies on insurers, AIA policy holders in Singapore need not worry.

As always, SDP chooses to only report on the worries of the policy holders without I) offering solutions, II) mentioning that they need not worry due to the MAS policy.

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. "

Source:
http://www.mas.gov.sg/news_room/letters_to_editors/2008/Comments_by_MAS_Spokesperson_on_AIA.html