The unit-linked is a perfect example and a good product for many customers who want to have a higher potential or alternative, willing to accept a little bit more investment risk. The product really changes the way we do business. Participating products will also be popular as they will allow customers to share in the company profits.
TT: Fitch Ratings last month gave a negative outlook for Taiwanese life insurers due to continuing negative spreads facing them now, notwithstanding the regulator's remedial measures introduced this year. What is your outlook for the sector?
Wood: Of course, the low interest rates and economic downturn have had an impact and have made us rethink our business. But I think that this will actually strengthen the industry in the long run. And even in these difficult times, the overall GDP growth rate of Taiwan, while lower than in the past, is and will continue to outperform most parts of the world. This is positive for the people and for ING Antai and our agents who are committed to helping our customers reach their life goals.
TT: Taiwan is proposing allowing insurers to take part in the management of the nation's labor pension program. Any early signs for that process?
Wood: From what I understand, there's a discussion ongoing right now to figure out where exactly insurance companies can operate. Insurers have traditionally played a vital role globally in the involvement of pension management. For ING Antai, we actually have some pension experts in Hong Kong and we have sent some materials to the American Chamber [of Commerce in Taipei] to give them the information for the government and for the labor union which is also very interested in the subject.
My understanding is that the government wants to make a decision for 2004, which is very quick. While the legislation is sort of a big picture for that process, the rule-writing and how that is actually being implemented are also very important.
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