MALAYSIA'S INSURANCE MARKET REMAINS LARGELY UNTAPPED

By Santhia Panjanadan

KUALA LUMPUR, Sept 6 (Bernama) -- Malaysia's insurance market remains
largely untapped with the average sum assured being less than RM50,000
(US$16,046).

Unlike other Asian countries such as Singapore or Taiwan which have a
similar population as Malaysia and a high average sum assured, Malaysians prefer
to save, rather than take up up an insurance policy.

According to Great Eastern Life Assurance (M) Bhd's Director and Chief
Executive Officer Koh Yaw Hui, this is due to a lack of acceptance and awareness
by locals on the importance and benefit of an insurance policy.

"Malaysia's insurance industry still has a high growth potential as the
average sum assured is low and insufficient for policyholders," he told Bernama
recently.

He also said it is important to raise the level of awareness for protection
locally as people do not see the returns.

"Illness or death is something they tend to take lightly and rather save
than take up an insurance policy for protection," he explained.

However, Koh indicated that the insured ratio is picking up.

Speaking on competition within the insurance industry in Malaysia, he said
it was not an issue.

"The life insurance industry in Malaysia is a blue ocean industry as people
are not competing against pricing. There is room for everyone to do well.

"As there isn't much competition, it also provides a bigger platform for
Great Eastern to focus and provide a better service for our customers, he added.

The company has three distribution channels, the agency force, bancassurance
and group insurance. It is confident that its agency force would continue to be
the key driver for growth.

"For this year, we are aiming for a 85 per cent contribution from our agency
force," Koh explained.

To date, Great Eastern has about 2.3 million policy holders and a network of
more than 17,000 agents nationwide.

The company also aims to achieve RM940 million (US$301.8 million) in new
business premiums for the current financial year compared to RM817 million
(US$262.3 million) previously.

Koh said he is also optimistic of achieving RM1 billion (US$321.1 million)
in new business premiums over the next one to two years.

Great Eastern recently launched its "Smart Early Payout CriticalCare"
product, the first plan in Malaysia, that pays in the early stages of a critical
illness.

The plan is expected to further boost the company's growth this year.
(US$1=RM3.1)

-- BERNAMA



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