Bangkok--11 Oct--Spark Communications 2007 AIA Survey Finds “Life Matters” For Thai People, But Few Are Financially Prepared to Handle TragedySerious accident and critical illness are primary causes of financial fear for those polled in annual index American International Assurance Company, Limited (AIA) announced today that results from its 2007 “Life Matters” Index revealed that, although Thai people worry most about illnesses, disease and travel risk and injury, very few are focused on saving money to mitigate those situations. In fact, the annual regional survey, now in its fourth year, found that more than 8 in 10 of those polled (83 percent) are not saving money on a regular basis, even though more than half are worried that illness or disease may impact their lives. Another key finding from the survey was that 84 percent of respondents indicated that they do not currently have an insurance product that will cover medical expenses during retirement. “The fact that so many Thai people fear tragedy, yet so few are preparing financially is alarming,” said Mr. Thomas James White, AIA Thailand’s Executive Vice President and General Manager. “That alarm grows when you consider that even more people are unprepared to handle significant health issues during their Golden Years.” Other notable findings from the survey include: High levels of concern are not reflected in willingness to prepare A majority of respondents (57 percent) were concerned about illness and disease. In addition, more than 50 percent of Thais surveyed were also either ‘extremely’ or ‘very’ concerned about suffering injury due to a traffic accident or some other travel related risk. Ironically, amid the concern, the survey revealed that an overwhelming 74 percent did not currently consider health insurance a priority and only ‘may’ consider it a priority in the future. Fears among Thai people of insecure financial future has risen dramatically The latest AIA survey also revealed that 58 percent of respondents believe that they would not have adequate financial resources to meet their needs, or those of their family, in the event of being diagnosed with a critical illness-such as cancer-that required extensive treatment. This represents a significant rise from the 37 percent who raised this concern in the 2006 survey. Traditional family values lead to lack of financial preparedness and place families at greater risk Despite the financial impact medical treatment for serious illness or accidents, or the potential longer-term implications of respite after-care, may pose for individuals and their families, almost half of respondents (47 percent) believed that in the event of requiring medical care in old age that their family members would take care of them. “Such findings indicate that many Thai people are adopting an ‘It won’t happen to me’ mentality,” said Mr. White. “This attitude demonstrates the fact that Thai people are relying on a misguided dependency-that accident and health related financial risk are reliant on family for provision.” Widespread perception of perceived illness cost vs. real-life financial impact calls for greater awareness and better planning The 2007 AIA survey also revealed a clear perception gap between what people believe is adequate cover (reflected in their current levels of insurance coverage) and the harsh reality of actual long-term medical care costs. Specifically, the survey revealed that, on average, respondents are covered by their current insurance plans for 411,596 Baht of related expenses in the event of falling ill with a critical illness. Although the average basic medical costs of treating a critical illness in Thailand are lower than this amount, such figures do not take into account the potential loss of income, the ongoing costs of long-term care, and other unforeseen expenses. For example, for immediate treatment of a breast cancer in private hospitals in Thailand will cost approximately 280,000 Baht, lung cancer 236,000 Baht, kidney failure 497,000 Baht, a stroke 350,000 Baht, kidney transplant 660,000 Baht, and coronary artery disease 710,000 Baht. On average, respondents thought it would take 494,879 Baht to fund critical illness care. While their estimates are in line with some of the above costs, there is a mistaken widespread belief that insurance coverage will provide not only for immediate care requirements but all additional associated costs as well. In addition, some 16 percent of the respondents were entirely unsure of the costs associated with treatment and long-term care. Majority of Thais inadequately prepared for retirement or unexpected loss of income Fewer than half of all respondents (42 percent) thought they could sustain their basic standard of living for little more than two years in the event of having their main source of income suddenly eliminated. This figure is a significant decrease against last year’s figure of 58 percent. “Amid a small window of financial sustainability, there is a clear need for education and awareness,” added Mr. White. “With tools and information at their disposal, Thai people should be empowered to take charge of their financial futures.” The 2007 AIA “Life Matters” Index assessed Thai attitudes toward personal finance protection and risk. Data was collected by market research firm TNS via the AIA “Life Matters” telephone interviews from a representative random sample of 1,000 people each in Hong Kong, Malaysia, Singapore and Thailand respectively. In HK and Singapore, the study was conducted through the Computer Assisted Web Interviewing (CAWI) via TNS 6th dimension Access Panel. As for MY and TH, the surveys were conducted through the Computer Assisted Telephone Interviewing (CATI). About AIA in Thailand AIA has been operating in Thailand for more than 69 years. As of December 2006 the company has total asset of 331 billion Baht and insurance reserves of 242 billion Baht. There are 4.2 million life insurance policyholders or 5.5 million policyholders if accidental and health insurance is included. Apart from ordinary life insurance, AIA offers accident and health insurance, group insurance, credit life insurance, worksite marketing, housing loan, and provident fund. About AIA in Southeast Asia AIA is one of the largest life insurers in Southeast Asia, with branch offices, subsidiaries and affiliated companies located in countries and jurisdictions including Australia, Brunei, China, Guam, Hong Kong, India, Indonesia, Japan, Macau, Malaysia, New Zealand, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. AIA markets a full line of life insurance products through a multi-channel distribution system, whose core franchise is an extensive agency force. About AIG AIA is a wholly-owned subsidiary of American International Group, Inc. (AIG), world leader in insurance and financial services. AIG is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris, Switzerland and Tokyo. For further press information, please contact: PR contactName: Pannawat Khlongnakrob or Kalayapas KulwongthanarojTel: 0-2653-2717 to 9 Email: [email protected], [email protected] AIA contactName: Napak SilasarpumpaiTel: 0-2638-7367Email:[email protected]