An additional tax relief for life or medical insurance in Budget 2018 will be a big breakthrough to drive the country’s private retirement protection in the long run, said Allianz Life Insurance Malaysia Bhd Chief Executive Officer, Joseph Gross.
He said the move would encourage more people to own private insurance.
“I know it is not easy to increase the tax breaks. But it is an incentive system that can work in the mid-term to drive up the private retirement protection for the long term,” he told reporters after launching Allianz 3Highs (3H) Cover here, today.
Gross was responding to questions pertaining to the industry players’ recent calls for extra tax relief on life or medical insurance in Budget 2018.
On the outlook for life insurance market in the country, Gross remained positive, saying that historically, the market’s long-term trend was at a growth of five to seven per cent.
“And the trend will continue for sure,” he added.
Gross remained optimistic when asked whether the country could achieve the 75 per cent life insurance penetration rate in 2020.
“That is why we are offering the new 3H Cover that is targeting people with pre-existing conditions of the 3H, namely high cholesterol, high blood pressure or a high body mass index.
“These people risked being turned down outright by other insurers and would not easily get insurance coverage,” he said.
Hence, Gross said by entering the new market and new segment, the initiative could help boost the penetration rate in the country.
“I believe the new product will see a meaningful growth within 24 months,” he said.
The 3H Cover is an insurance coverage enabling those who are suffering from the 3H to take up a protection plan up to age 85.