CIMB eyes RM200m revenue via partnership with Sompo

We have already achieved 20% of our target during the 1st 2 months of the year, says Samir


CIMB Group Holdings Bhd is expecting to achieve RM200 million in gross written premiums in 2018 via its partnership with Sompo Holdings (Asia) Pte Ltd to offer bancassurance services in Malaysia.

Group consumer banking CEO Samir Gupta said the partnership, which entails CIMB distributing Sompo’s non-life insurance solutions through its distribution network in the country, has received good response since its rollout in August last year.

“We achieved all our targets for the Malaysian tie-up last year, with RM22 million in total premiums recorded.

“From this partnership, we are targeting RM200 million in gross written premiums for 2018. We have already achieved 20% of our target during the first two months of the year,” he told reporters at the official launching ceremony in Kuala Lumpur yesterday.

The banking group signed a 15-year partnership with Sompo’s parent, Tokyo-listed Sompo Japan Nipponkoa Holdings Inc in June 2016, to distribute the insurer’s non-life insurance products across Malaysia, Indonesia, Thailand and Singapore.

CIMB group CEO Tengku Datuk Seri Zafrul Aziz had previously said the partnership would garner about RM1 billion in revenue over the first five years.

Samir said with bancassurance sales in Singapore and Indonesia already initiated in 2016, the banking group is on track in achieving its target.

“Response in Singapore has been as expected, while in Indonesia we have fallen slightly short due to our business readjustments in the motor insurance segment. We are also on track to roll out our offerings in Thailand in 2020,” he said.

According to Samir, the group’s insurance business contributed RM140 million to the group’s revenue last year.

Under the collaboration, CIMB’s subsidiary CIMB Bank Bhd will market and distribute non-life insurance solutions underwritten by Sompo’s local operating entity, Berjaya Sompo Insurance Bhd, to the bank’s retail and commercial customers in Malaysia.

Berjaya Sompo Insurance CEO Tan Sek Kee said products that have proved most popular since the rollout last year are fire insurance for mortgages and snatch theft policies.

The bank will distribute to the retail segment Sompo’s non-life insurance protection for home, motor and personal belongings as well as travel.

Protection for the commercial segment is offered under categories such as group benefits, liability, engineering, property and marine credit.

Tengku Zafrul noted that the Malaysian partnership follows the successful execution of the banking group’s partnership over the past two years with Sompo in Singapore and Indonesia.

The two parties have introduced app-enabled travel care insurance to commemorate the official launch of the collaboration, which can be purchased via CIMB Bank’s chat-banking app, Enhanced Virtual Assistant, starting in the second half of this year.