Sign up | Log in



Home  >>   Daily News  >>   Malaysia News  >>   Insurance  >>   Malaysian insurance sector on a high
NEWS UPDATES Asean Affairs   29 January 2013  

Malaysian insurance sector on a high


 The outlook for the Malaysian insurance sector is very bright, according to AIG Malaysia Insurance Bhd chief executive officer Matt Harris.

There is still much upside potential for certain products while the well-regulated environment provides solid growth.

“We think the (industry) outlook for Malaysia is very rosy. We are fortunate because unlike some neighbouring countries, we are not exposed to typhoons and earthquakes.

“So, there is a lot of comfort (for us) to be an active player in this market,” he said.

The industry had seen solid growth as it was also well-regulated by the central bank, he told reporters after formalising its partnership with MyEG Services Bhd to provide general insurance products online.

“The industry has grown at an average rate of 8 per cent in the past five years and we do not see why this will not continue in the next five years.

“It (growth rate) could even be pushed to double digits as there are a number of products which are under-penetrated,” he said, adding that there were also vast opportunities in the commercial segment.

According to Harris, 65 per cent of AIG Malaysia's portfolio was from the consumer segment, which was growing at a double-digit rate, while its commercial products could be growing at a higher rate.

“We see some good growth in the liabilities sector and indemnity products, as it is getting more important for businesses to insure in areas where they are exposed to risks,” he explained.

He also said the industry could do more to raise awareness of the pitfalls of not having home insurance, which he deemed another area of growth.

AIG Malaysia's provisional topline was close to RM580mil for the last financial year and the insurer was looking at 12 per cent to 15 per cent growth in the next three to five years, he added.

Harris also noted that consumers were moving from buying via intermediate channels to direct channels like online.

“Customers who are time poor' would like to buy policies online. We will see a shift in distribution (channels) in time,” he said, adding that its partnership with MyEG would support that change.

In some developed insurance markets, insurance sold through direct channels grew from the baseline from zero to as high as 35 per cent to 40 per cent, he said.

Currently, 60 per cent of AIG Malaysia's revenue came from around 3,000 of its general agents nationwide, 20 per cent to 22 per cent through insurance brokers and the rest through corporate partners, he said.

Both Harris and MyEG group managing director Wong Thean Soon were confident that online insurance sales would catch up with the developed insurance market.

Harris said AIG would kick start the partnership by providing auto insurance, extending that to personal and general insurance within six months.

He declined to reveal the sales target set for this collaboration but said the results from pilot tests had “exceeded expectations”.

Wong opined that many Malaysians were comfortable to transact online, but service providers must provide what people wanted.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    29 January 2013   
Subsribe Now !
• Survey shows economic volatility on top of Asean CEOs' concerns Subcribe: Asean Affairs Global Magazine
• ASEAN Tourism Forum in Vientiane Report Asean Affairs Premium
• Malaysia new auto sales on a high
• Vietnam, EU trade talks begin
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• FDI jumps by 23% into Indonesia
• Malaysian insurance sector on a high
• Malaysian Property prices to keep rising  
• Thai Tycoon plans to raise his own loans for F&N acquisition  
Asean Analysis              29 January  2013      Advertise Your Brand
• Asean Analysis- January 29, 2013  
• Asean Weekly- January 24, 2013 Sponsor Our Events

Asean Stock Watch      29  January  2013    

• Asean Stock Watch- January 29, 2013
• Asean Stock Watch- January 28, 2013

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2020 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand