Are You Exposed To AIG Insurance?

Following the troubled American International Group's (AIG) rescue plan by the US Government, sentiment against AIG has grown in Asia for the past two days, particularly in countries such as Singapore, Taiwan, Hong Kong and South Korea. A number of policy holders were seen asking for policy cancellations, in view of the company's current financial turmoil and fearful of potential losses from another potential bankruptcy.

The fears were understandable, given that the bailout from US Government will not guarantee its survival.

Bear in mind that early redemption values for insurance policies are often undesirable and come with high "costs". In some cases, the policy holder may also suffer "financial losses" due to early termination.

In Malaysia, the company is known as American International Assurance (AIA), a wholly owned subsidiary of AIG.

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