KUALA LUMPUR: AmGeneral Insurance Bhd is targeting to increase its gross written premium (GWP), which currently stands at RM1.6 billion by two to three per cent for the financial year to end March 2018.
“The motor insurance is a tough industry to be in especially with the decreasing car sales and the detariffication that's going on right now,” said AmGeneral Insurance chief executive officer Derek Roberts.
“The industry used to be able to grow up to nine per cent growth year-on-year, however that's no longer possible as we are operating in a low growth environment now. As such, we are expecting to grow between two to three per cent in GWP this financial year.”
The firm’s motor GWP segment represent the lion’s share of its GWP at RM1.3 billion, as of the end of the previous financial year in March 2017.
“AmGeneral Insurance's focus on motor will still continue despite the challenging environment because motor has always been our traditional business segment,” said Roberts.
“We are always looking at opportunities to expand our business and something that we are looking at is the Fire segment. We are also looking at utilising digital aid to improve our business and better support our agents and much more, over the next six months.”
Roberts, had earlier alongside chairman of AmBank Group Tan Sri Azman Hashim launched its latest motor offering, the Auto365 Comprehensive Premier.
With the launch, AmGeneral Insurance became the first insurer since the liberalisation of the motor insurance sector on 1 July 2017 to introduce a comprehensive and innovative offering that provides full accidental damage coverage.
“With liberalisation, the industry will strategically shift into a competitive, vibrant, and challenging marketplace which means the 'one size fits all’ formula long practiced by the industry is obsolete,” said Roberts.
“We are very excited to bring Comprehensive Premier to the market as it redefines the very concept of what comprehensive motor insurance used to be under the tariffed status. We are also the first insurer since the liberalisation exercise to introduce an innovative offering that provides full accidental cover that goes beyond merely including a few add-ons.”
On top of the current tariff coverage, the new product offers seven new additional coverage which are; (1) accidental damage; (2) damage caused by theft; (3) additional drivers; (4) towing assistance up to 200km roundtrip; (5) compassionate allowance for loss of vehicle; (6) three years warranty and; (7) 'Acts of God’ where optional.
“We are targeting new and up to three year old cars that are insured up to RM50,000 with this new offering,” said Roberts.
AmGeneral Insurance is the combination of two former entities namely AmG Insurance Bhd and Kurnia Insurans (Malaysia) Bhd through the acquisition of the latter by AmBank Group and Insurance Australia Group International Pty Ltd (IAG) back in September 2012.
With a market share of some 15 per cent, AmGeneral Insurance is placed second in overall motor. It is also, top three in overall insurance market share.