by Lorna Tan

INSURANCE agents were reminded yesterday that poaching customers - or agents from other firms - will not be condoned as it goes against industry best practices.

The warning from the Insurance and Financial Practitioners Association of Singapore (Ifpas) came in response to talk that some agents were seen poaching customers at AIA's customer service centre at Finlayson Green last Friday.

Ifpas president MP Sellvem said: 'Attempts by agents to solicit clients by giving wrong reasons and playing up on poor customer sentiments would not be tolerated.'

Trade Minister Lim Hng Kiang also reassured Singaporeans that their AIA policies are secured.

Yesterday, he said on the sidelines of the Latin Asia Business Forum that the Monetary Authority of Singapore has managed to ring-fence these funds so Singaporeans should rest assured that their insurance and endowment policies with AIA are well covered.

The news last week that AIA parent AIG needed bailing out by the US government led to panicky customers rushing to AIA's offices demanding to surrender their policies.

The Association of Banks in Singapore also issued a statement yesterday, asking member banks to remind staff to 'refrain from commenting negatively about other financial institutions based on unsubstantiated rumours'.

This article was first published in The Straits Times on September 23, 2008.