HUNDREDS of American International Assurance (AIA) insurance policyholders thronged its Raffles Place customer service centre since it opened yesterday morning.
They were worried about how the troubles faced by AIA's parent, American International Group (AIG), would impact their policies.
When my paper left the service centre at 5pm, it had stopped accepting new service requests. But there were still more than 20 people in the queue.
The Monetary Authority of Singapore (MAS) said in a statement yesterday that AIA Singapore currently has enough assets in its insurance funds to meet its obligations to policyholders.
MAS requires all insurance companies here, including AIA, to set aside insurance funds that are separate from its head office and other shareholders' funds.
Still, policyholders were concerned.
"I bought insurance for assurance. But I have no assurance now," said Ms Pat Gan, 49, a retiree.
An information-technology sales executive, who wanted to be known as Jason, 27, told my paper that he had cancelled an endowment plan. He would not be cancelling his health and accident policies as they do not have cash value on termination.
According to the New York Times, the United States Federal Reserve has been in talks with US investment banks Goldman Sachs and JPMorgan Chase to put together a US$75 billion (S$108 billion) loan to help AIG with its huge financial losses.
AIG is the largest US insurer by assets.
Those in the financial sector are concerned that without help for AIG, its losses could cause a ripple effect that might be damaging to other companies.
In a media statement, Mr Mark O'Dell, executive vice-president and general manager of AIA Singapore, assured the public: "Although AIG faces short-term liquidity pressures, we have a strong, well-positioned business in Singapore."
There are policyholders who are not fazed by AIG's woes.
Said a business-development manager, who wanted to be known as Mr Cheng, 51: "If MAS gives assurance (for AIA), why not hold on to my policy? There's no point in cancelling it due to panic."
kennyc@sph.com.sg
Policyholders may call AIA's hotline on 6248-8355.
