The latest statistics from Life Insurance Assocation Life insurance industry starts 2011 on a high note (05 May 2011) is out. Out $1.39 billion claims, only $88 million payout was due to death, critical illness and disabilities. The rest of the payout was due to policies that matured. To put it in a nut-shell, only 6.33% of the insurance companies’ cash outflow to policyholders was due to insurance claims. This is the strongest evidence to show that the insurance companies’ core-business is no longer in risk management but in wealth accumulation. If that is the case, insurance companies should rename themselves as asset managers or fund managers instead of insurance companies. What is the implication for consumers? Many consumers buy ‘insurance policies’ to hedge their risk against death, critical illness and disabilities but little do they realised that they ......