More people are cashing out ...
http://newpaper.asia1.com.sg/news/story/0,4136,177034,00.html?Hundreds queue to terminate AIA policies They're afraid to 'lose out' because of parent company's woes
By Arul John
September 18, 2008
THE man in the line could not be convinced by the assurances.
WE WANT OUR MONEY: The queue of people outside AIA Tower yesterday afternoon. TNP PICTURES: CHOO CHWEE HUA
The studio photographer in his 50s, who wanted to be known only as Mr Heng, said he owns several AIA life insurance and investment-linked policies.
Yesterday, he decided to terminate some of them and joined scores of people who lined up from around 9am outside AIA Singapore's Shenton Way headquarters.
This came after news on Monday that AIA Singapore's parent company, American International Group Inc (AIG), had been allowed to access US$20 billion ($29 b) of capital from its subsidiaries to help it out of its difficulties.
AIG reported larger than expected losses in the first quarter of this year, and by end-June, had lost US$13.2 billion. This, with the collapse of investment bank Lehman Brothers and the takeover of its rival Merrill Lynch by the Bank of America, has plunged the world financial system into turmoil.
The Monetary Authority of Singapore (MAS) urged policyholders not to act in haste.
But Mr Heng said: 'Hong Kong-based websites which I read state that AIG's problems could cause it to be bankrupt in a short time. I think it is better for me to cash in my policies and get as much returns now. If I wait too long, I may lose out.'
Three middle-aged men in the queue, who did not want to give their names, were also adamant about terminating their life insurance policies.
This, despite reassurances from staff and copies of press reports pasted at the customer care centre to show that AIA is not affected by the recent financial firestorm.
One of them said: 'I would rather do it now and get some money than wait for more bad news later, by which time it may be too late for me to get any money.'
One of his friends said: 'MAS made all those assurances in order to prevent a panic. What will they be able to do if and when the situation really gets worse? I don't want to wait until that time.'
They were also not losing much money as their policies were near maturity.
But there were others who were willing to give up their policies even though they stand to lose more.
Finance company executive Manu Tandon, 25, said his brother authorised him to terminate his AIA policy, although it was only in effect for 10 years.
He said: 'Despite the MAS assurances, I do not feel confident and I will carry out my brother's wishes, even though the surrender value will be low.'
Bank employee C Y Ang, who is in her 30s, also said she wanted to terminate her life insurance policy although it was only in effect for about 10 years.
Agreeing with her was finance executive Liza Tham, 45, who said: 'We have only heard from MAS, but we have not heard anything from AIA or AIG. That is why I went to AIA Tower today, to find out what they have to say about the matter.'
One AIA agent, who did not want to be named, said many of her clients had called her during the last few days. 'Many of them wanted to terminate their policies but I managed to assure them to keep their policies. I promised them I would update them as soon as I got more news,' she said.
An AIA Singapore spokesman said the firm could meet the liabilities of all its policyholders.
