AmGeneral sees 2-3pc rise in premium
KUALA LUMPUR: AmGeneral Insurance Bhd sees two to three per cent growth in gross written premium (GWP) for the current year ending March next year, from RM1.5 billion in March, a modest forecast that is in line with industry’s expectation.
“Many years back, the industry used to be able to grow up to between seven and eight per cent annually. But lately the industry is operating in a low growth environment,” said AmGeneral Insurance chief executive officer Derek Roberts.
He was referring to Bank Negara Malaysia’s tariff rate mandate that took effect on July 1 2017, where the comprehensive and third party fire and theft coverage was liberalised.
Since then, consumers can choose from a wider array of cheaper motor insurance products to suit their needs.
AmGeneral Insurance’s network of some 7,000 agents currently serve one in every six cars in Malaysia via its two brands, namely AmAssurance and Kurnia Insurans.
“We’re expecting a single-digit growth of between two and three per cent in GWP this financial year,” said Roberts.
“We are looking at opportunities to expand non-motor business, such as insuring against fire damage. We are also looking at utilising digital aid to better support our agents,” he said at the launch of enhanced features of “auto365 Comprehensive Premier”, titled “auto365 third party fire & theft premier”.
Also present at the launch were AmGeneral Insurance senior vice-president of product, pricing and underwriting Simon Herbert and chief distribution officer Grace Quah.
Roberts said the benefit to this enhanced feature was the “at fault collision coverage”, which meant insurance coverage provided up to RM5,000 per incident to the policyholder even if it was their fault.
Last month, AMMB Holdings Bhd group chief executive officer Datuk Sulaiman Mohd Tahir said the group was looking to divest units deem non-crucial or less capital-accretive.
AMMB holds 51 per cent of AmGeneral Holdings, which fully owns AmGeneral Insurance Bhd, while the remaining 49 per cent stake is held by Australia’s largest general insurer, Insurance Australia Group Ltd.
Roberts said: “It’s really up to the shareholders weighing in on their options. At management level here, I would said it is business as usual.”