Thailand's biggest state pension fund, the Government Pension Fund (GPF), has extended its collaboration with three leading life insurance companies for the 12th consecutive year.
The three insurers are: Muang Thai Life Assurance, AIA Thailand, and Thai Life Insurance. They sell insurance plans to GPF members at special premium rates.
Ms Srikanya Yathip, acting secretary-general of the GPF, said that the Fund considers private insurance coverage as providing great benefits to its members comprising civil servants, teachers, and police and military officers, reported The Nation.
While the GPF currently generates an investment return of about 6%, which is quite attractive compared with banks’ deposit rates, many members consider the investment return from GPF funds as not sufficient for their post-retirement needs or in case they suffer from a severe illness, such as cancer or diabetes. This concern has led them into supplementing their savings with insurance protection from private firms, Ms Srikanya added.
GPF members have taken out 1.1 million life policies from private insurers, she said. The Fund has more than one million members.