Manulife mulls increase in premiums

KUALA LUMPUR: Manulife Insurance Bhd is still reviewing plans to increase charges and premiums on its insurance policies due to medical inflation, said its CEO George Chew.
"This is something that we look at on a regular basis. At this point, we have not made any decision to increase (charges and premiums) but we will constantly manage it," he told reporters at the launch of its Elite Global Select Plan (EGSP) yesterday.
Last week, an English daily reported that many insurance companies increased their charges and premiums by up to 20% following the government's decision in December last year to allow an increase of up to 14.4% in private medical fees.
It was reported that most insurance companies had adjusted their charges and premiums for medical, health and investment-linked policies over the last few months to cope with medical inflation.
Manulife Holdings Bhd group CEO Mark O'Dell said they plan to launch at least two to three funds this year.
"A lot depends on what we feel like with our partner Alliance Bank, what we feel the customer needs. Our strength has been in fixed income but we're bringing more and more of the success we've had in this multi-asset involvement and dynamic asset allocation strategy. I expect to see more of those types of actively managed funds in the coming months and years," he said.
Manulife Insurance and Alliance Bank signed a 10-year partnership in June 2013 and since then, Alliance Bank has seen growth in its bancassurance business.
Alliance Bank group CEO Sng Seow Wah said contribution from bancassurance to its wealth management revenue grew from 15% in 2012 to 35% at end of 2013.
Manulife Holdings' assets under management are currently at RM6.5 billion. In November last year, Manulife Holdings said it would buy 100% of MAAKL Mutual Bhd for RM96.5 million.
"The legal integration is on track to conclude in the third quarter, by July or August," said O'Dell.
Meanwhile, on the EGSP, Chew said it aims to secure 2,000 to 3,000 policies in the first year. To date, it has secured a total of four policyholders with a total investment of RM1.2 million.
The EGSP is an investment-linked plan that allows Malaysian investors to access multiple asset classes across Asia, Europe and the US.
The plan will be distributed exclusively through Manulife Insurance's partner Alliance Bank Malaysia Bhd. The EGSP aims to deliver a regular income stream to investors through the Manulife Global Select Fund which is managed by Manulife Asset Management Services Bhd.
The EGSP offers a payout of 5.5sen per unit per annum for the first five years which will be paid quarterly, and an annual variable payout from the sixth year until policy maturity at the tenth year. The minimum investment is RM20,000 and there is no exit fee.
The 10-year close-ended single premium investment-linked plan also offers life protection, covering death and total and permanent disability.