MCIS Zurich expects gross premiums to top RM700m

 

MCIS Zurich Insurance Bhd expects gross premiums to expand faster this year, driven by an economic recovery and higher productivity from its agents.

Despite what is expected to be a recession in 2009, the composite insurer posted 8.3 per cent growth in premiums for 2009. It made RM642.3 million in gross premiums for the year to June 30 2009 as against RM593.2 million in 2008.

This year, it forecasts gross premiums to expand close to 10 per cent to RM703 million.

Last year's growth was mainly driven by its life division. MCIS Zurich's life business scored premiums of RM432.6 million, compared with RM400.3 million the previous year.

Its general division hit RM209.7 million in 2009, as against RM192.9 million in 2008.

Chief executive officer Md Adnan Md Zain said competition would also be tougher this year.

"There will be a restructuring in the insurance industry with the entry of more takaful operators this year. We need to step up our efforts including improving our agency force productivity," he said. MCIS Zurich now has 3,500 agents.

MCIS Zurich, a privately-held medium-sized insurer, is held by Koperasi MCIS Bhd with a 43.7 per cent stake, while Zurich Asia Holdings Ltd (Zurich) has another 40 per cent.

"We will continue to grow our business by consistently focusing on customers' needs by providing innovative products and ensuring our sales force are well trained to provide the best service to our customers.

"With Malaysia's insurance penetration at 41 per cent, which is low compared with developed economies, the opportunity for growth is good," he said.

For the year ended June 2009, MCIS Zurich's total assets grew to RM3.41 billion from RM3.13 billion.