Insurer relaunches popular products after hurdleBusiness | Esther Yu 13 Dec 2016
AIA (1299) is to put out a new version of its flagship saving policy "Bonus Power Plan (Enhanced Protection)" and "Proactive Insurance Plan" next week.
The insurer has issued an eternal notice earlier this month that the two products are to take an exit from the market and stopped to be sold as a result of a tightened compliance policy by the insurer regulator Office of the Commissioner of Insurance.
The new version of the two policies will be launched on the 19th this month, business strategy and marketing general manager Bonnie Tse Pui-lan revealed, the guaranteed return as well as life protection is to be raised, while reducing the non guaranteed return.
The extent of the shift is yet to be disclosed, she said.
Tse said the decision is based on the uncertainties in global financial markets, but refused that it has anything to do with the new regulation.
GN16, the regulation to be implemented in January next year, requires insurers to list all the factors affecting non guaranteed returns in the policies, including interest revenue, market risks as well as expenses. Real returns achieved are also needed to be listed on its website.
Insurers are also required to review their investment strategies every year and follow up with the policyholder on the non guaranteed returns.
That translates to a more cautious and conservative attempt when insurers spell out their bonus or non guaranteed returns in the policy terms.