AXA-AFFIN Life Insurance Bhd (the joint venture between AXA APH and AFFIN Holdings) would consider acquiring other insurance firms if its bid for Malaysian Assurance Alliance Bhd (MAA) failed. However, the part of the news that catch my attention is the personal story of AXA APH chief executive for South-East Asia, David Matthews.
He recalled how his first client, a 21-year-old man was killed in a motorcycle accident not long after the man had bought insurance. The man’s aged father, who lost a leg during a war, was the beneficiary. â€œThe family depended on him to provide for them as he was the only son. It was a very moving experience and we are happy that we were able to provide protection for people’s life. We are very serious in providing good advice,â€ he said. â€œIt is easy to put off decisions today but you never know when your health will strike you down or something may happen,â€ he added.
Tune Money Sdn. Bhd hopes to expand its insurance and other financial services to Indonesia, Vietnam and Thailand by June next year.
On the insurance business, Tune Money expected to sell 100,000 policies in the next 12 months as its online products were 30% to 40% cheaper than similar products available under conventional methods in the market. The no-frills online financial services company’s Tune Money Insurance is based on takaful principles and comprises three products â€“ personal accident, motorcyclist personal accident and home insurance, underwritten by CIMB Aviva.
I just checked out Tune Money’s website and bought a Personal Accident plan for RM200,000 coverage with annual premium RM105 only. It is about 50% cheaper than the premium rate offered in the market through agents. Beside PA, the website also offers home protection plan and motorcyclist personal accident protection plan.
AT least 10 general insurance companies are under pressure to merge with larger capitalised companies with the risk-base capital adequacy (RBC) framework deadline drawing closer.
The framework requires each insurer to maintain a capital adequacy level that commensurate with its risk profile. Many of them were now looking for suitable suitors that could add value to their business and inject capital, which they were in dire need of to survive, failing which they might risk losing their insurance license, one observer said.