Hong Leong Assurance sees robust sales growth

HONG Leong Assurance Bhd (HLA) expects to chalk up better sales this fiscal year despite consumers being more cautious in their spending after a recent fuel price hike.

HLA, the insurance arm of Hong Leong Financial Group Bhd, has so far not been hurt by cautious consumer sentiment, said Charlie Oropeza, its group managing director and chief executive officer.

"We have not really seen the impact. This is our first month in our new financial year and we're very optimistic about the next 11 months because sales has been very robust. It's very promising," he told reporters after launching a new product, HLA Promise, yesterday.

For the year ended June 30 2008, HLA registered a strong annual growth of 154 per cent in regular premium sales.

"We expect to grow further this year. If you look at our total business, we expect it to grow double-digit over last year," Oropeza said.

The company has already managed to garner premiums of more than RM10 million for HLA Promise over its 10-day soft launch.

HLA Promise is an insurance policy that enables customers to receive guaranteed regular cash payment, on top of a lump sum benefit at maturity. The minimum sum insured that a client can invest in is RM20,000.

The plan comprises savings, total protection and assured income with reinforced benefit.

"HLA Promise provides benefits that are currently not available to most savings plan - regular cash payments are guaranteed to continue until maturity in the event of death or total permanent disability," he said.

And in the case of critical illness, policyholders will receive double the guaranteed regular cash payments.

HLA is also the first to offer a shorter premium payment term of six years, since it has been found that customers prefer shorter terms.

HLA has a customer base of about 350,000 in the life insurance division.