Amid tough times of economic and political crisis, life-insurance companies are offering a wide range of new products to customers eager to cover the risks of everyday life in an environment where security seems to be a scarce commodity.
At Money Expo 2010, which opened yesterday at the Queen Sirikit National Convention Centre in Bangkok, new financial products and packages and life-insurance products are being offered to consumers, with attractive conditions and returns on investment.
Of particular interest is the variety of life-insurance products that focus on short-term savings plans, offering conditions and payment terms to suit all lifestyles.
The total value of life-insurance business to be written at Money Expo is expected to reach Bt1 billion in premiums. Muang Thai Life Assurance, for example, is expecting to achieve sales of Bt100 million during the four-day event.
Muang Thai president Sara Lamsam said many of products being offered were focused on short-term savings and that they would compete directly with the products of commercial banks.
For instance, Muang Thai Top Saver 10/4 is a life-insurance cover in which the customer pays premiums for only four years but enjoys 10 years of coverage, at interest of 3.81 per cent per year.
Moreover, Muang Thai Smart Saver 10/1 involves a single premium payment for 10 years of life coverage and a return on investment reaching an average of 3.4 per cent per year.
Likewise, Muang Thai Smart Saver 5/1 requires a single premium payment for five years of life cover and a return on investment of 3 per cent per year.
The company has also launched Muang Thai Unitlink 1 and Muang Thai Universal Line, both of which have a life-insurance policy attached to investment in financial instruments. Policyholders can choose from three funds, offering a range from low- to high-risk investments. The low-risk investment generates a 6-per-cent return, the medium-risk choice sees 10 per cent of the fund invested in the Thai bourse and a 7-per-cent return on investment, and the high-risk fund invests 20 per cent in the Thai bourse for a 9-per-cent return.
Sara said Muang Thai's total premiums leaped 42 per cent year on year to Bt9.23 billion in the first four months of the year. Total premiums are expected to reach Bt30.5 billion this year, giving the company 15-20-per-cent growth despite the political turmoil.
Of that, first-year premiums are expected to reach Bt3.86 billion, up 47 per cent, and renewal premiums should reach Bt5.36 billion, up 39 per cent.
"Thais have turned to purchasing more life insurance, particularly short-term packages," Sara said, adding that there was some consumer interest in life insurance attached with investment.
At the booth belonging to American International Assurance (AIA), visitors will enjoy great product offers and the opportunity to undergo a personal AIA Financial Health Check.
As a special offer for the expo, AIA is offering an endowment policy that guarantees a 2.7-per-cent annual return from a single premium for 10 years' coverage.
The company says the offer is a unique opportunity to lock in a superior rate for 10 years and benefit from the available Bt100,000 tax deduction. With premium discounts available, the offer compares favourably with other guaranteed-interest rates in the market.
AIA Thailand chief marketing officer Michael Parker said his company would not only make great-value offers to customers, but also give something back to the needy.
Other attractive product offers include 5Pay10 (Non-Par), a 10-year endowment policy under which premiums are paid over five years and which offers 500-per-cent guaranteed total benefit of the initial sum assured.
The very popular AIA Universal Life, a policy that is flexible for the changing needs of a lifetime, will also be on offer. AIA Link, Thailand's first unit-linked insurance product, will also be available from specialist advisers.
Ocean Life Insurance is offering two savings products - Thai Samut Sasomsub (10/4) and Thai Samut Sintawee 425 (15/8) - involving short- and medium-term coverage.
Ocean Life president Nusara Banyatpiyaphod said Thai Samut Sasomsub (10/4) was a short-term savings life-insurance policy. Policyholders pay premiums for four years to enjoy coverage for as long as 10 years. The sum insured can range from Bt10,000 to Bt5 million, and the product is designed for customers aged 20-70.
Thai Samut Sintawee 425 (15/8) is drawn for medium-term coverage. It requires eight years of premium payments for coverage of 15 years. The minimum sum insured is Bt50,000, and the product is aimed at customers of all ages up to 60.
Nusara said customers buying life-insurance products would also qualify for tax deductions of up to a maximum of Bt100,000 a year.