New generation targeted for unit-linked insurance
Manulife Insurance (Thailand) is working with Manulife Asset Management to strongly promote the company's Unit Link product among new-generation customers seeking an investment return as well as insurance cover.
Alan Ng, president and chief executive officer of Manulife Insurance (Thailand), said yesterday that the Office of the Insurance Commission had recently approved the company’s plan to sell unit-linked insurance, making Manulife the fourth insurer to sell this type of product in the Kingdom.
Manulife’s Unit Link will commence sales this quarter, he said, adding that its affiliated company, Manulife Asset Management (Thailand), will oversee the investment from the funds gained through selling premiums. Manulife Asset Management will have an allocated fund manager to help ensure policyholders achieve a healthy return on investment.
Ng said the company would target those aged 20 to 40. Many investors in that age bracket prefer a high-risk, high-return strategy, and most prefer to choose an investment type that best suits their needs.
Manulife Asset Management will offer three funds to serve investment by Unit Link policyholders.
Those opting for conservative investment will be offered a Manulife short-term fixed-income product. The fund manager will invest in government bonds and deposits, which are expected to provide an annual return of 2.4 to 2.5 per cent, similar to what banks offer.
The second fund, for which Manulife Asset Management will invest in equities in the Thai bourse, is suitable for investors who prefer high risk, high return products. The annual return on investment in Thai stocks in recent years has averaged 22 per cent.
The third option is the China Value Fund, in which money from Unit Link premiums will be invested in the Chinese stock market.
Manulife has 10 offices in Asia, which means it has expertise in regional as well as Thai investment, Ng said.
Meanwhile, the Thai unit will increase the number of single-licence agents to deal with Unit Link business from the current total of 12 agents.
Agency sales are a key channel for Manulife Insurance (Thailand), with annualised premiums of Bt26 million in the first four months of the year for a 190-per-cent rise year on year in the segment.
Apart from Unit Link, the company will also focus more on participating whole-life insurance, where it sees room for growth, the executive said.
Participating whole life is a popular type of policy overseas, whereby customers can be protected and get an annual dividend at the same time.
Manulife offers nine participating whole-life policies, under which a dividend is paid yearly based on the company’s performance.
The dividend rate for participating whole-life insurance this year is set at 2.75 per cent.
