Hello!

The AIG incident has caused many people to have many questions about AIA. Now I would like to list down the five major questions for AIA policyholders/prospective policyholders. I hope it will be helpful to everyone.

1What happens to the insurance policy?

Even if AIG were to be liquidated, AIA would not be in bankruptcy.

AIA is a pure insurance company. According to legal regulations, a life insurance company's assets must be greater than its liabilities at any time. The Insurance Regulatory Commission will also monitor it on a regular basis, so in theory there will be no insolvency.

As the leading insurance company in Hong Kong, China, AIA currently has 2.2 million insurance policies (Prudential is second, with 970,000 policies), and AIA Hong Kong, China, has 30 billion in assets and is absolutely capable of paying for all policy needs.

2. AIG wants AIA of Hong Kong, China to hand over life-saving money?

The U.S. Federal Reserve has the right to allow AIG to "pump water" from its subsidiaries, but it should only be limited to domestic subsidiaries in the United States and cannot cross regions.

Overseas subsidiaries and parent companies are in two separate positions, and the assets of the subsidiaries are also regulated by local laws and cannot be transferred at will.

In fact, the China Insurance Regulatory Commission also prohibits Hong Kong AIA from transferring assets out of Hong Kong, China.

AIG also received a US$85 billion loan from the United States, and AIG's financial difficulties were resolved.

At the same time, the United States has become the largest shareholder of AIG, and AIG is even less likely to go bankrupt.

3 Impact of investment-linked life insurance The protection component of investment-linked life insurance risks is only symbolic. The policyholder only pays a small amount of life insurance and service fees, and most of the rest is invested in funds.

Fund price risks are inherently borne by policyholders, so if the life insurance company is liquidated, such plans will have minimal impact.

In fact, I have never heard of life insurance companies being liquidated. At best, they are only acquired.

4The impact of AIG funds In theory, funds managed by AIG will not be affected by the deterioration of financial conditions.

When the fund is established, it must follow the regulations of the regulatory agency and conduct activities according to the investment strategy.

The funds collected by the fund must also be separated and placed in the trust company, also in two trays.

Therefore, even if the company goes bankrupt and liquidates, the assets in the trust will not be affected.

In fact, AIG only has cash flow problems. Even if it wants to spin off its business, it will not have to worry about no one acquiring it.

5Should I cut the order?

The policy is a long-term contract, and the risk premium and fees are paid in advance during the early payment period.

Therefore, if you cut the order early, the early premium will be wasted.

If you buy a policy from another company after the order is cut, you will have to pay the wind premium again.

On the other hand, you also have to bear the risks that may arise during the transfer period.

I am a financial advisor of AIA. If you have any inquiries, please feel free to contact me.