INVESTMENT-LINKED insurance products may be hot right now but Pacific Century Insurance is reluctant to follow the fashion.
The insurer is traditional at heart. It may have bowed to pressure in March by introducing an investment-linked policy, but it has no plans to go any further.
'Many clients told our agents that they wanted to buy investment-linked products so we also had to launch an investment-linked product in March,' said Andrew Yang Fan-shing, deputy chairman and chief executive.
'But I don't think we should promote too many of these kinds of products. Investment-linked products are very trendy, but they may not be in the best interests of the customers.
'It is a fact that many policyholders fancy these high-return products but I wonder if they all understand the risks involved.'
Products include a combination of life protection policies and a range of investment funds. Policyholders can decide in which funds they want to invest their premium.
Under a more traditional scheme, the insurance companies are responsible for investing the premium and guarantee returns to policyholders.
