Can’t pay! Insurance customers Discard the policy to 6 hundred thousand copies, warning, difficult to make new, the result is not the same.
Business Nation Report that Office of the Insurance Commission (OIC) During the nine months of 2020 (Jan. – Sep. 2020), it was found that the system life insurance policy had a total of 676,017 cancellations and lapse (lapse), divided into 331,715 lifetime life insurance, 190,388 savings
76,979 personal accident insurance, 56,902 term life insurance, 11,913 group insurance, 4,341 versions of investment-related life insurance (unit link), 2,364 pension insurance, 1,401 universal life insurance and 14 other forms of life insurance. issue
This corresponds to the rate of life insurance policyholders per capita declining to 39.50% from 39.65% in the same period last year. Which contributed to the profit of life insurance companies in the first nine months of 2020, the whole system decreased by more than 11,818 million baht, leaving a total net profit of 28,974 million baht, opposite the loan with the policy loan (policy loan) in both The system increased 20.78% to 175,883 million baht.
M.L.Jiraset Suksawat President and Chief Executive Officer Bangkok Life Assurance PCL revealed that since the fourth quarter of 2020, the life insurance system will begin to see signs of higher policy termination. Due to the expiration of the great period, many customers are not paying for their life insurance premiums. Which after the expiration of the payment period for 30 days in the life insurance system Will allow customers to make an automatic policy loan transaction (automatic premium loan: APL)
The insurance company will borrow from the cash value of the policy, the customer will pay the premium instead, so that the policy loan amount will be higher. This situation has a negative impact on both customers and insurance companies.
Remind customers to come back and make a new hard – returns are not the same.
Mr. Brian Smith Director, President and Chief Executive Officer Allianz Ayudhya Capital Public Company Limited (AYUD) said that the year 2021 was a very challenging year. Because insurance sales do not grow due to the economic downturn And worsening the effects of COVID-19 Although protection & health products are gaining attention, purchasing power is not available. This will affect the signs of policy termination in 1Q21 will be even higher.
“Now we have to come up with a plan to tell our customers that It will be very difficult to cancel the policy. Because if it is health insurance, a new health check is required While savings insurance, the rewards may not be the same. Because global interest rates are very low, ”said Brian.
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