Wednesday, February 15, 2012

INDONESIA - TAKAFUL - Great Eastern CEO optimistic about Southeast Asian market

www.insuranceinsight.eu - Asia's oldest insurance group, Great Eastern, remains bullish on the prospects of the industry in Southeast Asia, despite the eurozone crisis, low penetration rates and insufficient coverage in several regions.

According to Asian publication, The Sun Daily, Great Eastern CEO Chris Wei was addressing reporters at the launch of its Live Great loyalty programme on Friday.  (source)



"The outlook on the insurance industry in Southeast Asia is very positive and we had a good start to the year. We hope the European issue resolves itself sooner rather than later," said Wei.

"We're in the best part of the world; Southeast Asia is still enjoying strong growth and we hope the region will beat some of the forecasts this year."

According to The Sun Daily, Wei noted the significant insurance gap (under-insured), and explained that customers worry about health and medical issues as well as costs in dealing with these issues in the region.

He said that, although penetration of insurance is 40% in Malaysia (as reported by Life Insurance Association of Malaysia), coverage is insufficient and takaful penetration is only 10% despite the large Muslim population (61%).

Thus, he added, there is a need to provide the right products to meet customers' needs and to hire more takaful operators in Malaysia.

In Singapore, which is sometimes seen as a mature market, life insurance providers need to keep up with changing customer needs, while in Indonesia the market is attractive but very fragmented and challenging, Wei said.

Wei expects Great Eastern's new Live Great programme to help improve its bottom line, top line and market share in the region, and is confident that customers will see it as an additional benefit.

"While other insurance companies focus on offering financial protection, at Great Eastern we are going beyond the traditional role of an insurance company. We believe that, while insurance is important, it can never replace what matters most to your family, which is you," he said.

The programme aims to support customers in their efforts to live better and more healthily by rewarding them with exclusive privileges.

The group launched its campaign in Malaysia and Singapore, and will launch it in Indonesia in the second quarter before expanding it across the region.

Source:http://www.insuranceinsight.eu/insurance-insight/news/2151872/eastern-ceo-optimistic-southeast-asian-market - Feb 13, 2012

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