Insurance industry to grow 4% to 5% in 2016, says MSIG CEO

KUALA LUMPUR: The insurance industry is projected to grow by 4% to 5% in 2016, said MSIG Insurance (M) Bhd chief executive officer Chua Seck Guan.

“In terms of growth percentage, we used to plan for 6% to 8% growth on a good year, but then moving forward, we had to change our figures due to the impact of the goods and services tax, weakened currency and the dampening market,” he told Bernama in an interview.

For 2015, the insurance industry was expected to record a maximum growth of 3% to 3.5%, after achieving 2.6% as of September, Chua said. 

“Going forward into 2016, it is unlikely that the insurance industry will get 6% to 8% growth and that would impact MSIG’s growth as well,” he said.

Consumers, he added, were being very cautious and holding back their decision on big ticket items such as new cars or new houses due to the weakened currency.

“By and large, in terms of the Malaysian economy, they (government) are targeting about 4% to 5% growth and if that takes place, there would still be growth next year for the industry,” he said.

MSIG was awarded the General Insurance Company of the Year at the 19th Asia Insurance Industry Awards organised by Asia Insurance Review last month.
 
On the win, Chua said it was the company’s first attempt for the award, competing with some formidable insurers, especially two companies from India. 

“Now we have a third-party endorsement, a very credible source, so we are very happy with the win,” he said, adding that Malaysian insurers should participate in such awards. 

“If possible, I would want more Malaysian companies to win this award. Hopefully with our win, we can encourage more of my fellow compatriots to also put in their submissions,” he said, adding the award offered about 14 categories, including Insurer of the Year, Employer of the Year and Brokers of the Year.

“Our standards in insurance are quite high...it’s just that the entries from Malaysia are not many,” he added.

MSIG Malaysia had a gross written premium of close to RM1.5bil as of September 2015, the second largest in Malaysia.

It has more than 700,000 policyholders, comprising 55% personalised insurance with the remaining 45%, commercialised.

MSIG Malaysia is the local subsidiary of Japan’s Mitsui Sumitomo Insurance Company Ltd. - Bernama