KUALA LUMPUR: AmGeneral Insurance Bhd sees two to three per cent growth in gross written premium (GWP) for the current year ending March 2019, from March 2018's RM1.5 billion, 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.
Roberts was referring to Bank Negara's tariff rates mandate that took effect 1st July 2017, whereby 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 to three per cent in GWP this financial year,” said Roberts.
“We are always looking at opportunities to expand our non-motor business, such as insuring against fire damage. We are also looking at utilising digital aid to better support our agents," he said.
Roberts was speaking to reporters 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 AmGeneral Insurance chief distribution officer Grace Quah.
Roberts explained the benefit to this enhanced feature is the 'at fault collision coverage' which means insurance coverage now provides for the policyholder for up to RM5,000 per incident even if it is their fault.
Last month, AMMB Holdings Bhd group chief executive officer Datuk Sulaiman Mohd Tahir said the group is 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 (IAG).
When asked to comment on this, Roberts replied, "it's really up to the shareholders weighing in on their options. At management level here, I would said it is business as usual."
To another query on news reports that AmGeneral Insurance could be valued at between US$400 million and US$500 million, Roberts smiled and replied, "we cannot comment on speculation of our valuation."
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