Thursday, September 18, 2008

Who insured the insurer?

Tuesday news, US Federal Reserve (Fed) announced it would bail out AIG from financial turmoil by providing a bridging loan of US$85 billion (RM293 billion) for two years.

It is not a very good news as my family hold a medical card policy. AIA chief executive officer Khor Hock Seng said in a statement yesterday has assured policyholders in Malaysia that it is not impacted by the near insolvency of holding company American International Group Inc (AIG). "We are a locally incorporated insurer, with more than 96 per cent of our total assets invested in Malaysia."

Situation was more serious at Singapore as hundreds of customers flocked to the troubled insurer American International Group Inc. (AIG) on Wednesday, many hoping to pull their investments and policies from the company.

I sms my agent this morning. She replied saying she is now at Laos and will call me tomorrow. I do hope what AIA M'sia CEO said carried weight. If not, there goes our money. This proof that even the (big) insurer need to be insured. In this case by the US government.


joshua said...

yup, that goes to show nothing is permanent...

i guess we can still sue if no money back?

cck said...

Hope doesn't need to end that way. See what my agent say.