KUALA LUMPUR: Alliance Bank Malaysia Bhd aims to generate RM200 million in incremental revenue to its shareholders following its 15-year bancassurance and banctakaful partnership with Zurich Malaysia, inked today.
Alliance Bank subsidiary, Alliance Islamic Bank Bhd today inked an exclusive 15-year bancassurance and banctakaful agreements with Zurich Genral Insurance Malaysia Bhd and Zurich General Takaful Malaysia Bhd, aimed to strengthen its position in providing end-to-end financing solutions for both individuals and small and medium enterprise (SME) community.
Alliance Bank group chief executive officer (CEO) Joel Kornreich said the bank’s partnership with Zurich Malaysia will help to strengthen the group’s capability to provide a comprehensive suite of solutions for customers – businesses and individuals alike.
“The offering of general insurance and general takaful solutions allow us to cater to our customers’ specific needs, and is consistent with the bank’s vision of ‘Building Alliances to Improve Lives’,” he said at the signing ceremony here.
Zurich General Insurance CEO and Zurich General Takaful executive director David Fike said the partnership is in line with Zurich Malaysia’s aspiration to scale its businesses through diverse distribution channels.
“Expanding our distribution channels is one of the ways for us to reach customers quicker, at their convenience, to offer them assurance against risks.
“Our pursuit of delivering differentiated customer experience through innovative products, hassle-free and value-added services has led us to partner with Alliance Bank for bancassurance and banctakaful.
“We look forward to a long and fruitful partnership with the well-established banking group to provide customers with holistic solutions that meet both their personal and business financial needs,” he said.
Fike said the partnership will also help the company to address the issue of providing non-insured and under-insured customers, of which penetration stands at a low 1.23 per cent of gross domestic product (GDP) and improve the group’s market share moving forward.
He said currently, Zurich is positioned at number seven in terms of market share in the overall insurance industry.
According to industry reports, the general insurance industry registered a growth of 1.5 per cent in 2018, while the general takaful industry recorded a 8.9 per cent growth on the back of higher premiums and contributions from its two largest classes, motor and fire.
“We believe that there is a lot of room for growth opportunities in the market looking at the low rate of penetration,” he said.
Effective May 1, Zurich Malaysia’s general insurance and general takaful products will be offered throughout Alliance Bank’s 81 branches, its sales force of over 860 professionals, as well as its digital channels.
This will be carried our progressively, starting with protection against fire damage for individuals and commercial property owners, followed by SME and personal insurance, and takaful plans that would meet the needs of Alliance Bank’s customers.