Oman Insurance Company (OIC) has launched an innovative single-premium insurance plan and targets to achieve premiums of US$40 million over the next 12 months.
The product, called Invest Protect, provides investors with upside potential from global markets by investing via a portfolio of low cost index building blocks, including exchange-traded funds (ETFs) that are managed by BlackRock. ETFs are investment funds that aim to track an index cost effectively.
The insurer has also partnered with international commercial bank Commerzbank to provide a downside protection facility which ensures that the unit price of the investment will always be at least 80% of the highest historical unit price.
“This is an absolutely unique product in the UAE. Clients have the opportunity to benefit from the capital growth and, importantly, the clients’ downside is protected,” said Mr Emmanuel Deschamps, Head of Life Insurance at OIC.
There are a number of other advantages: in the event of the client’s death, the proceeds from the life insurance cover associated with the policy are paid immediately to the client’s designated beneficiary, regardless of their country of residence. Clients can withdraw their funds at any time during the five years of the policy, although early withdrawals are subject to charges. Assets are held offshore by Euroclear, one of the largest custodians in Europe.
“Banks and IFAs will be key in distributing the product, and we are already seeing strong demand. OIC and Commerzbank have been recently awarded the prestigious Insurance Deal of the Year by Structured Retail Products for Invest Protect,” said Mr Rakesh Sudhakaran, Head of Bancassurance at OIC.
Invest Protect combines the key strengths of three organisations to produce an attractive investment option for clients offering downside protection, said Mr Christopher Hughes, Head of Structured Solutions, Commerzbank. M