AIA On Track to Be Market Leader
Bacaan 7 min
Enlarged entity focuses on multi-distribution strategy
Kuala Lumpur, March 14, 2013 – AIA Group Limited’s acquisition of ING Management Holdings (Malaysia) Sdn Bhd (“ING Malaysia”) advances its vision to stake market leadership in Malaysia. The US$1.7 billion acquisition signals the group’s commitment and confidence in Malaysia’s growth potential.
Post transaction closure last December, AIA has been focusing its resources on the integration of the two entities in terms of distribution effectiveness, product targeting and customer engagement. The ongoing integration of AIA and ING in Malaysia will deliver a stronger suite of products, leveraging on the best of AIA’s multi-distribution capability via its enlarged tied agency force of 16,600 members, strategic bancassurance partner and corporate solutions sales team.
A game changing innovation is the interactive point-of-sale (iPoS) business application, which just rolled out nation-wide. With an iPad, agency force members are able to capture a customer’s data and signature electronically for instant policy submission. This will greatly improve the customer experience for AIA’s current 2.6 million policyholders and new customers.
“The coming together of AIA and ING is indeed a once in a life time opportunity which allows us to embark on our next growth chapter in Malaysia - tapping into the respective strengths and expertise of the two companies. Combined, we have the best talents and resources to better serve Malaysians and we are working hard now to establish the foundation of the new AIA which will help us achieve our vision of becoming the Undisputed No.1 life insurer in Malaysia,” said Bill Lisle, Chief Executive Officer of AIA Bhd.
2013 priorities naturally include integrating the best of the two businesses while also focusing on training and rebranding its agents to be Life Planners, further enhancing the agency force through more Gen Y recruitments, expanding its bancassurance relationship and dominating in the Group Insurance and Takaful businesses. These enhancements to its distribution capability will help AIA deliver more targeted products and a better customer experience.
Commenting on Malaysia’s growth prospects, Bill Lisle, Chief Executive Officer of AIA Bhd said, “We are now bigger, stronger and better and hence this gives us an advantaged platform to transform our business and capture the market potential of over 10 million insurable population between now and 2020. AIA is definitely on high gear to reinvent our business, our products and our services.”
The Malaysian government, under the Economic Transformation Programme (ETP), targets 75% of the population to be insured by 2020, which translates into a market potential of over 10 million insurable population (of the projected 32.4 million population by 2020). According to Life Insurance Association of Malaysia, currently only 46% of Malaysians are insured, at an average RM34,700 sum assured. However, given the rising cost of living, the recommended sum assured should be about RM310,000 per policyholder.
For the financial year ended 30 November 2012, AIA Group Limited reported a net profit jump of 89% to US$3.02 billion with 27% value of new business growth to US$1.2 billion while AIA Malaysia’s value of new business increased by 17% to RM211 million.
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About AIA Bhd.
AIA Bhd. is a leading insurer in Malaysia, where we have been fortunate to do business since 1948. We offer a suite of high quality products including Protection, Health, Personal Accident, General Insurance, Employee Benefits and Family Takaful options to meet our customers’ protection and financial security needs at every juncture of their lives. Through our wide and diverse distribution footprint which comprises a tied agency force of over 16,000 members, our exclusive bank partner’s branches nationwide as well as corporate sales teams and brokers, we give our customers the choice of deciding how, when and where they connect with us.
Part of the AIA Group, the largest independent publicly listed pan-Asian life insurance group, AIA in Malaysia has the financial strength, experience, service centre network as well as a well-trained team of more than 2,000 staff to serve its over 2.6 million customers nationwide. As at end 2011, AIA Bhd.’s total asset worth was RM21 billion, with a paid-up capital of RM242 million.
About AIA
The AIA Group exists to provide our customers with financial protection, security, and a comfortable future.
As a company, we understand that life is unpredictable. It has highs as well as its challenges - and everyone is on a different journey. That’s why our starting point has always been understanding people. By being genuinely engaged with people’s real lives, we gain deeper insights that enable us to offer a range of insurance and wealth management products that fit the needs of the individual.
Over the last 90 years, we’ve built our business upon serving the ever-changing needs of people and companies in Asia. Our personal, relationship-based approach has made us part of the fabric of life here. And we will continue to protect generations of people for many years to come, whatever life brings them.
So whether you need support in achieving your ambitions, supporting a family, enjoying retirement, or anything else, we understand where you’re coming from, because we’ve been there ourselves.
That’s why we like to think of ourselves as the real life company.
Media Contacts
Darshini M. Nathan
Head, Corporate Communications
