Berjaya Sompo eyes 8% GWP growth


General insurer Berjaya Sompo Insurance Bhd targets an 8% growth to RM960 million in gross written premiums (GWP) this year versus RM900 million recorded last year.

CEO Tan Sek Kee (picture) said his team is targeting a marginal growth compared to the 18% increase recorded in 2018.

“This year, we will be focusing on innovative products, digitalisation and improved efficiency,” he told reporters during the company’s luncheon in Kuala Lumpur yesterday.

According to Tan, Berjaya Sompo currently ranked eighth among general insurers in Malaysia in terms of GWP.

“When we started in 2010, we were ranked 10th and our ultimate goal is to be (in the) top five,” he said.

Overall, in 2018, Tan said the company grew by 16%, making it possibly the fastest growing company within the industry.

“As at the third quarter last year, our market share grew by 5% and we aim for 6% to 7% in 2023,” he said.

Tan added that the group is looking at ways to cut cost, while expanding its business without having to compromise its premiums.

“We can’t always be looking at cutting premiums. Berjaya Sompo is expanding its business by venturing into digitalisation, so we have set up a digital team for this purpose,” he said.

According to Tan, the digital team is working on a platform that provides insurance products on-demand online.

“We want to be able to provide products to people as and when they need it. It’ll be available on a website because a mobile application would be redundant,” he noted.

Tan emphasised that the company does not intend to open up more branches nationwide.

“To date, we have 20 (branches) and we don’t have plans to open anymore branches since we are going digital,” he said, adding that additional branches would be redundant as clients have started moving online.

In terms of client base, Tan said small and medium enterprises and corporates are its largest clientele, followed by individuals.

“(Also,) 50% of Berjaya Sompo’s business comes from motor insurance and in 2017 — we were ranked the second- biggest health insurer in Malaysia for general insurance companies,” he added.