Insurer mulls 'no-claim bonus' for
The country's largest life insurer, Ayudhya Allianz CP Life (AACP), is thinking of introducing the "no-claim bonus" principle - widely used in motor insurance - to its health insurance policies.
Currently, health insurance premiums are considered very high. They provide a year-on-year coverage and are not refundable. AACP's president, Wilf Blackburn, said the firm will campaign for discounts in annual health insurance premiums when there has been no claim in the previous year. The idea is similar to motor insurance, where insurers discount premiums for renewal of policies when car owners have not filed a claim in the previous year. Over the past five years, AACP has offered a co-payment health insurance policy, with a 30 per cent discount on regular premiums, but if the policy-holder is admitted to hospital, medical expenses are shared between the policy-holder and the insurer, according to proportions outlined in the policy. "That is for those who want to buy a health insurance coverage but consider that, once in a while, they will need to go to hospital," said the vice president of AACP's marketing division, Sombat Kullawoot. Meanwhile, while forecasting that the Bank of Thailand's policy interest rate will be lowered again, AACP yesterday launched its third investment-linked life insurance policy - Allianz Market Winner 10/2. The policy, which has 10-year maturity, offers a capital guarantee and returns linked to quarterly movements in Dow Jones' Euro Stock 50 index. The bonus will be topped up and returned to the policy holders when the policy matures. The insurer aims to receive Bt500 million from the new policy. Part of it will be invested in bonds, providing a coupon rate to cover the capital investment. The rest will be invested in the Dow Jones Euro Stock 50 index. The new product is on offer only until Friday and the minimum sum insured is Bt50,000. Tracking the index back to a decade ago, it yielded an 8.9 per cent average return, and according to the insurer's research, the European market is still expected to outperform. A few years ago, AACP launched two life-coverage policies linked to the Stock Exchange of Thailand (SET) index and the SET50 composite index. American International Assurance (Thailand) is another life insurance player offering similar investment-linked life coverage policies. However, AACP is the first to offer a 10-year product, the longest maturity so far.
Piyarat Setthasiriphaiboon The Nation
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