AIA Public Takaful Bhd is optimistic on the potential of capturing a larger Bumiputera market this year given the low penetration rate, growing middle-class population and strong economic fundamentals.
KUALA LUMPUR: AIA Public Takaful Bhd is optimistic on the potential of capturing a larger Bumiputera market this year given the low penetration rate, growing middle-class population and strong economic fundamentals.
Takaful coverage in the Bumiputera segment currently stands at 15 per cent in the country, said chief executive officer Elmie Aman Najas at a media briefing on the company’s financial results for the year ended 2015 here yesterday.
He said the wide protection gap, coupled with the high medical inflation rate of about 12 to 14 per cent, provides an opportunity for the company to introduce innovative and new takaful products, thus bridging the gap in the Bumiputera segment.
“We recently this year introduced the A-Life Signature-i plan, an investment-linked plan (ILP), and we are looking forward to a new product in the family takaful segment.
“The product, expected to launch in the second half of 2016, is unlike the traditional model and would be a game changer for the life insurance industry,” he said.
For its financial year (FY) ended Nov 30, 2015, AIA Public registered a 51 per cent growth in annualised new contribution (ANC) to RM162 million compared with RM107 million in FY2014.
Elmie said it was the highest ANC growth (calendar year) in the industry at 34 per cent against the industry average of 14 per cent growth.
The value of new business growth (VONB) for 2015 expanded 50 per cent to RM72 million compared to RM48 million in 2014, while its ILP ANC grew 34 per cent to RM63 million against RM47 million in 2014.
The industry’s ILP ANC grew at an average of 21 per cent last year.
Elmie said AIA Public will also focus on recruiting more agents to make them full-time planners who are active every month.
“We have a programme called Startup 36 to train our agents from the point they join and promote them as they progress.
“Our approach also stresses the usage of technology gadgets such as i-Pads, and submission of cases by our agents through it has now reached about 95 per cent.
“This can also attract the Gen-Y generation and drive our business to a better level in reaching out to customers,” said Elmie.
He noted its product distribution through agencies accounts for 70 per cent, with the remainder through its bancatakaful partner Public Bank and its corporate solutions business, particularly to grow the employee benefits business segment focusing on small and medium enterprises (SMEs) employees’ coverage. — Bernama