INSURANCE agents were reminded on Monday that the industry does not condone poaching of customers in the wake of the AIG turmoil, which rocked the financial world last week.

The stern reminder was issued by the 4,000-member strong Insurance and Financial Practitioners Association of Singapore (Ifpas), in response to market talk that some agents were seen poaching AIA customers at its customer service centre at Finlayson Green last Friday

Said Ifpas' president MP Sellvem: 'We strongly advise against members exploiting the situation and request that members act professionally and responsibly.

'It doesn't help the current situation if they resort to poaching. It will ultimately erode the condidence and trust the public has in the industry."

Thousands of concerned customers thronged the AIA offices last week to surrender their policies, following news of possible collapse of insurance giant AIG, parent company of AIA.

The situation has improved since Friday with some reinstating their policies.

Mr Sellvem said that any attempt by agents trying to solicit clients by giving wrong reasons and playing up poor customer sentiments is deemed as poaching.

If an agent of another insurer is asked for advice by an AIA customer, he should echo the official assurance that AIA has sufficient capital to meet all obligations.

Customers should be advised to take a long-term view and be educated on the benefits and coverage they may lose if they surrender their policies prematurely, he said.

Mr Sellvem added that the association has so far not received any report of poaching by its members.

The Life Insurance Association last week reminded its members that it takes a serious view of distributors targeting policyholders to surrender or replace their policies.

'The LIA takes very seriously any attempt by distributors to target AIA policyholders and advise them to surrender or replace their policies. The LIA would remind customers that life insurance products are designed for certain durations, and that therefore there are significant disadvantages if they are terminated early,' it said.