In The News
PruBSN plays its ace
Prudential BSN (PruBSN) Takaful had a relatively good year in 2010, commanding 23% of the takaful market share based on Annual Contribution Equivalent (ACE), becoming the second-largest takaful provider in Malaysia.
PruBSN’s ACE in 2010 stood at nearly MYR179 million (US$59 million), up nearly 20% from the previous year. Regular contributions grew by the same rate to almost MYR175 million.
CEO Azim Mithani attributed the strong results to PruB¬SN’s focus on four key strategies: strengthening distribution, offering and building on customer-focused range of products, employing the best people and providing exemplary customer service and operational platform.
“We plan to build on our successes by further le¬veraging on our strengths in these four key areas. With this, we are confident that the company will soon be the number one takaful provider in Malaysia.”
Climbing to the top
PruBSN, a joint venture between Bank Simpanan Nasional (BSN) and Prudential of UK, hopes to achieve this goal within the next three years, he disclosed. “We will put our focus on strengthening our distribution through our agents and bancatakaful partners.”
The company posted sales of MYR49.2 million in the first quarter of 2011. Mr Mithani termed this a “broad-based result with all our channels – PAMB Agency, our Direct Agency and our Partnership Channel – performing very strongly and consistently.”
He added: “We also have a strong product base which offers attractive features, and we strongly believe that pro¬viding products that customers want is the way to go, so our focus in this area will continue.”
Mr Mithani welcomed RBC, saying it would give good takaful players more flexibility to manage their capital in relation to the risks they assume. “In addition, having a RBC framework in place will also facilitate a more efficient capital structure and create a stronger risk management culture among takaful providers.”
He said he expects Malaysia’s takaful sector to continue its strong growth momentum and record higher penetra¬tion, boosted by growing income levels, the current low penetration of insurance and takaful, as well as the recent market liberalisation.
“All in all, we can expect the takaful market to be substantially bigger, robust and stronger, with a variety of takaful products on offer to customers. This, in a nutshell, is good news for all Malaysians.”