AmGeneral Insurance Bhd expects a slow growth of two to three per cent in gross written premium for its motor insurance segment for the financial year ending March 31, 2018 compared with RM1.27 billion previously.
Chief Executive Officer Derek Roberts said despite expanding between eight and nine per cent previously, the motor insurance industry growth declined to one per cent for the past two years.
“This slow growth is on the back of the challenging environment, predominantly due to uncertainty in the behaviour of competitors in the liberalised market and declining vehicles sales,” he told a press conference after the launch of the company’s new product, Auto365 Comprehensive Premier here today.
He said the Auto365 Comprehensive Premier was a redefinition of comprehensive motor insurance following the liberalisation of the motor insurance sector which took effect on July 1 this year.
The county’s motor insurance landscape has transformed into a competitive and vibrant market and the new product would allow the company to meet the challenges of de-tariffication.
Key unique features include accidental damage, damage caused by attempted theft, additional drivers, 200km towing assistance, compassionate allowance for loss of vehicle, three years warranty for workmanship and an optional partial cover for convulsions of nature.
In terms of pricing, premiums would be priced fairly based on the individual’s customer’s risk profile.
“We are underweight in the new car segment relative to the rest of the industry, and this new product will allow us to grow in this segment.
“We are targeting new cars of one to three years with a sum insured over RM50,000,” he added.