BSompo targets higher premiums
Insurer banks on partnership with CIMB to offer bancassurance services in Malaysia
KUALA LUMPUR: Berjaya Sompo Insurance Bhd (BSompo) is targeting gross written premiums of RM990mil for 2019, up from RM904mil last year.
Chief executive officer Tan Sek Kee said the target is in line with BSompo’s partnership with CIMB Group to offer bancassurance services in Malaysia.
“Our partnership with CIMB has given us tremendous growth and it will play a big role this year,” he said at a media luncheon.
CIMB signed a 15-year partnership with Sompo’s parent, Tokyolisted Sompo Japan Nipponkoa Holdings Inc in June 2016, to distribute the insurer’s non-life insurance products across Malaysia, Indonesia, Thailand and Singapore.
Tan, however, admitted that the industry is expected to be challenging this year, in light of the tariff liberalisation for motor and fire insurance.
“Due to the de-tariffication, we need to find ways to become more efficient and cut cost. One of the ways to improve efficiency is to embrace digitalisation.
“We can’t lower the prices of our products too much or it will affect our margins.”
He emphasised that the group would not be cutting staff.
“We are maintaining our staff strength but we’re also looking to grow the business in the fastest way. We’ve started a digital team to steer this growth.”
The insurance company currently has close to 2,800 agents.
BSompo chief distribution officer Stuart Chua said the digital market is rapidly growing. “Consumers require ease and online is an avenue that’s available 24 hours,” he said.
With the group’s fourth-quarter earnings still yet to be officially finalised, Tan said BSompo’s market share stood at 5% as at the end of its third quarter.
“We are looking at a tentative pre-tax profit of RM70mil. That’s a 15% year-on-year growth.
“We are currently the eighth largest insurer in Malaysia. Our target is to be the fifth largest in the country by 2020 and we are on target to achieve that.”
Chua added that gross premiums for 2018 is expected to be more than RM900mil. “We’re looking at RM904mil,” he said.
BSompo is 70% owned by Sompo Japan Asia Holdings Pte Ltd while the remaining stake belongs to the Berjaya Group.
According to reports, BSompo is developing new business-to-consumer channels to serve its mobile customers, as well as the simplification of its online products across motor, travel, snatch and home, in an attempt to expedite and improve accessibility for Malaysians to purchase its products.
Going forward, the insurer is looking to strengthen its data capabilities and translating meaningful data to help serve its customers better.
In October last year, it was reported that BSompo was open to the idea of acquiring other insurance companies in the market. The report said the insurer had received acquisition proposals.