THURSDAY, March 28, 2024
nationthailand

GPF sticks with life insurers

GPF sticks with life insurers

THE Government Pension Fund (GPF) yesterday extended its collaboration with three leading life insurance companies for a 12th year.

The GPF considers private coverage as providing great benefits to its members comprising civil servants, teachers, and police and military officers, said Srikanya Yathip, acting secretary-general of the GPF. 
GPF members have now taken out 1.1 million life policies from private firms, with the total sum insured reaching Bt196 billion, she said. 
The GPF currently generates an investment return of about 6 per cent, which is quite attractive compared with banks’ lower deposit rates. 
It also outstrips inflation. 
However, many members consider the investment return from GPF funds as not sufficient for their post-retirement needs or in case they suffer from a severe illness, such as cancer or diabetes. 
This concern has propelled them into supplementing their savings with insurance protection from private firms, she added. 
Sara Lamsam, president and chief executive officer of Muang Thai Life Assurance, said his company could sell 16,559 policies to GPF members last year, up about 70 per cent from last the previous year. 
He also expects double-digit growth this year. 
Customers are worried about their health outlays in the future or unexpected events that may consume all their GPF funds. 
GPF members have preferred to pay Bt15,000-Bt16,000 in annual premiums for insurance, which is not expensive, he said. 
AIA executives said they offer insurance coverage for up to 99 years for customers wanting protection against the common critical illnesses among Thais, such as cancer, diabetes, stroke as well as heart disease. 
Executives of Thai Life Insurance Co said they have six types of policies designed to meet the unique demands of GPF members and their families.
The GPF has been paying more attention to investment in real estate to raise returns for its 1 million members, while 60-70 per cent of its investment portfolio remains parked in government bonds. 
 

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