Business

Friday May 22, 2009

Agents to drive AXA Affin’s premiums growth

By DALJIT DHESI


KUALA LUMPUR: AXA Affin Life Insurance Bhd will bank on its agency force and bancassurance business to meet its triple-digit growth target in new business premiums by year-end.

Chief marketing officer Nicholas Kua Choo Ming told StarBiz the company was on track to achieve the “triple-digit” growth this year, repeating last year’s performance.

“We had strong growth in new business premiums last year, over a smaller base in 2007 when the company officially started operation early that year.

Nicholas Kua Choo Ming ... The low awareness of professional advice among Malaysians is an area of concern for us

“For the first quarter this year, we had a commendable double-digit growth in new business premiums (over the previous corresponding period) and our target is to achieve triple-digit growth this year,’’ he added, but declined to give any figures.

The company’s financial year ends on Dec 31.

Incorporated in February 2006, AXA Affin Life is a 51:49 joint venture between Affin Holdings Bhd and AXA Asia Pacific Holdings Ltd.

According to Kua, AXA Affin Life intends to expand its agency force to 1,200 by year-end from about 400 currently.

For bancassurance, it was looking at adding one or two business partners to the present two, he added.

In a press briefing on the AXA Life Outlook Index 2009, Kua said the survey results showed that more than half of Malaysians had a positive attitude towards retirement planning despite the current uncertainties.

Given the current economic situation, 23% of the respondents said they would increase savings for retirement while 43% said they would proceed as planned. The company conducted a similar survey in 2007.

Kua said 38% of the respondents (against 2007’s 36%) indicated they had a retirement plan and had taken action, and 27% (against 2007’s 20%) were thinking seriously but unsure of how to plan.

There were also fewer non-planners at 7% compared with 12% in 2007, he noted.

Asked how they planned their finances, nearly 73% of the Malaysians said they had been planning for retirement on their own or with their families.

“The low awareness of professional advice among Malaysians is an area of concern for us. It implies that many Malaysians are unaware of insurance as an effective tool to provide long-term financial security.

“Financial planning is not something consumers should do on their own. Instead they should seek professional financial advice from experts in this field,” Kua said.

The company would continue to educate consumers on the importance of having their financial solutions underwritten by financially sound and prudent financial institutions, he added.

The findings also revealed that Malaysians were greatly affected by the lack of “job security” during the current economic situation.

This had impacted their life priorities as they continued to place career and retirement above family and health, he said.

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