| Author | Apiram Udomrattanachai |
| Call Number | AIT RSPR no.SM-04-68 |
| Subject(s) | Insurance, Life--Policies--Thailand
|
| Note | A research study submitted in partial fulfillment of the requirements for the
degree of Master of Business Administration. School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ;no. SM-04-68 |
| Abstract | Before the Asian Economic Crisis in 1997, most of Thai people deposited their money in
the commercial banks, which offered very high interest rate. There was only a small
group of people that understood about investment market and earned profit from it.
After the crisis, everything has changed. Every commercial banks reduced their offering
interest rate. Total spending decreased dramatically. People find the way to invest their
money since interest from commercial bank is equal to 'nothing' (i.e. l % for 12-month
fixed account). More people study and try to find more information about investment
market, which can give them more benefit than that of commercial bank, although it is
coupled with high risk. When Thailand gradually recovered from the Economic Crisis,
the sales of insurance policy was increasing. It is because people realized about
unce1iainty from the crisis and insurance companies launched new products to the market.
These new products are saving type of insurance policy. It is similar to save money with
commercial banks but it provides more profit because insurance companies invest
insured's premiums in the investment market, which gives more returns. It has boomed
insurance business since then.
However, insurance companies have the same problem now. They guaranteed interest
rate at 6% for this saving type of policies, but, presently, they can earn only 4-5% from
their investment. Therefore, they need to find a new product, which can provide clients
better benefit without increasing the companies' risks othe1wise their sales will be
decreased.
Accordingly, in 2003, Unit-Linked Life Policy was introduced in Thailand. Unit-linked
life insurance offers the interesting option of combining the protection, securities
investment and also tax advantages of life insurance. The insured decide in which
investment fund they want to invest their money and participate in the performance of the
selected funds with all the opportunities and risks that may entail. So the insured have
chance to earn more/less profits and take risks on their own.
This research is conducted to give a brief study of Unit-Linked Life Insurance Policy in
the United Kingdom market, as its origin, and to assess problems and challenges of
introducing ULIP to Thai insurance market and provide recommendations to insurance
companies, as the decision makers, in order to successfully introduce ULIP to the market
or make any appropriate decision.
|
| Year | 2004 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-04-68 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S. |
| Examination Committee(s) | Sununta Siengthai ; Singha Chaimsir
|
| Scholarship Donor(s) | Royal Thai Government Fellowship
|
| Degree | Research Studies Project Report (M.BA.) - Asian Institute of Technology, 2004 |