KUALA LUMPUR: AIA Bhd expects the life insurance industry to register a high single-digit growth in new insurance premiums this year, from a low single-digit last year, driven by consumer needs for greater protection in view of higher medical costs.
Its incoming CEO Anusha Thavarajah (pix) said the first quarter this year may have been "a bit quieter" because of the implementation of the Goods and Services Tax but the opportunity for growth is there and that the Malaysia life insurance industry is expected to continue to show good growth this year.
"The protection gap in Malaysia is still very big. If you look at the average sum insured, there is still a huge gap between what they need and what they have bought and ultimately life insurance is an industry that is immune from economic movements in the country," she told reporters after an announcement of her appointment as incoming CEO here yesterday.
AIA saw an overall increase of 34% in value of new business (VONB), an important measure of new business profit for insurers for the year ended Nov 30, 2014.
Malaysia is the AIA Group Limited's second largest growth market by VONB terms in Asia Pacific.
Anusha, who is set to take over the helm from current CEO Bill Lisle on June 1, 2015, subject to Bank Negara Malaysia's approval, said the focus moving forward is to enhance AIA's distribution channel, which includes agency, the bancassurance partnership with Public Bank and Citibank as well as the corporate solutions business.
"For agency, recruitment is a big focus for us together with enhancing the professionalism of our agents. Technology is also important and at the end of the day, a big focus for us is improving the customer service experience and being the insurer of choice to the public," she said.
Meanwhile, she said AIA will be separating its life and general businesses over time as composite insurers and takaful players will be required to split their life and general insurance businesses by 2018.
"Yes, we will do that over time. We're still in discussion. It's still in progress."
Anusha's appointment comes as Lisle has been appointed regional chief executive of AIA group. Lisle will be overseeing the markets of Malaysia, Korea, India, Sri Lanka and Cambodia.
Anusha, who is currently the regional business development director, is the first woman to join AIA's rank of CEOs in the insurer's six largest markets in the Asia Pacific region. She will be responsible for steering AIA on its continuing journey of growth and transformation.